TransUnion's analysis reveals targeted marketing can amplify return on ad spend, with optimal audience traits yielding significant performance gains.
Quiver AI Summary
TransUnion's latest analysis highlights how audience composition significantly influences marketing performance, demonstrating that effective targeting can lead to up to a 9x increase in return on ad spend (ROAS). The study, conducted across real campaigns from 25 clients in five industry verticals, found that audiences defined by multiple optimal consumer traits showed exponentially higher ROAS, while poorly targeted campaigns drastically underperformed. The research emphasizes the importance of precise audience targeting rather than relying on broad demographics, revealing that even slight variations in targeting can lead to substantial differences in marketing outcomes. TransUnion's data encourages marketers to adopt more sophisticated targeting strategies, combining various consumer characteristics to enhance performance, while also recognizing that effective targeting alongside engaging creative content is crucial for achieving optimal results.
Potential Positives
- The analysis highlights that targeted audience strategies can significantly enhance return on ad spend (ROAS), with potential upsides reaching up to 9x.
- This data-driven insight reinforces the importance of precise targeting in marketing, showcasing TransUnion's expertise in actionable audience strategies.
- The release underscores the vast performance differences that can arise from optimized targeting decisions, indicating the effectiveness of TransUnion's marketing solutions.
- TransUnion's analysis draws upon extensive campaign data and highlights the company's capabilities in providing innovative solutions that extend beyond core credit services.
Potential Negatives
- The analysis reveals a significant risk associated with mis-targeting, as campaigns targeting the wrong audience segments can see a drastic decline in ROAS, with a maximum of -90%, highlighting potential inefficiencies in marketing strategies.
- The necessity for precise audience targeting and the emphasis on the consequences of poor decisions may reflect vulnerabilities in the current targeting processes that TransUnion's clients are employing.
- The focus on advanced targeting strategies implies that clients who do not adapt may fall significantly behind competitors who leverage data-driven insights, potentially impacting TransUnion's client retention and acquisition efforts.
FAQ
What is the main finding of the TransUnion analysis on audience targeting?
The analysis shows that optimal audience targeting decisions can increase return on ad spend (ROAS) by up to 9x.
How does audience composition affect marketing performance?
Audience composition significantly impacts marketing performance, as more targeted audiences can lead to higher ROAS while mistargeting drastically lowers it.
What are the risks of poor audience targeting?
Poor audience targeting can result in up to a 90% decrease in ROAS, emphasizing the importance of strategic audience building.
How many targeting attributes were analyzed by TransUnion?
TransUnion evaluated 26 targeting attributes across six categories, revealing how subtle changes can greatly swing performance outcomes.
What industries were included in the analysis?
The analysis included campaign data from 25 brands across five different industries, highlighting diverse marketing strategies and outcomes.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
CHICAGO, June 12, 2025 (GLOBE NEWSWIRE) -- An analysis from TransUnion (NYSE: TRU) sheds new light on the impact of audience composition on marketing performance, showing that making the best targeting decisions can have a compounding effect on return on ad spend (ROAS}—an upside of up to 9x.
The analysis , based on real-world campaigns from 25 TransUnion measurement clients across five verticals, revealed a widening performance gap as audiences became more targeted: An audience built with two optimal consumer traits had a 3.6X ROAS upside, while an audience with three optimal traits had a 7.2X ROAS upside.
Conversely, the analysis also highlights the risk of making sub-optimal targeting decisions, i.e., the more campaigns were targeted to the wrong audience segments, the worse they performed. At the farthest end of that spectrum, mistargeted campaigns saw –90% ROAS, placing fresh emphasis on the importance of audience building to the bottom line.
“In a world with thousands of targeting choices, the challenge is selecting the most effective option from many that appear similar,” said Matt Spiegel, EVP of TruAudience Growth Strategy. “Our data proves that even within common attributes like income or age, the performance difference can be massive.”
Positive and Negative Impact of Targeting Sophistication on ROAS
Single
Characteristic Audience |
Two
Characteristics Combined |
Three
Characteristics Combined |
Four
Characteristics Combined |
Six
Characteristics Combined |
||||||
Correct
Decisions |
97% | 3.6X | 7.2X | 8.3X | 9X | |||||
Wrong
Decisions |
-49% | -78% | -88% | -89% | -90% |
The analysis evaluated 26 targeting attributes across six distinct categories such as age, income, presence of children, and neighborhood type. The findings showed that even subtle variations in targeting led to significant swings in return on ad spend — reinforcing the need for smarter audience strategy.
Rather than defaulting to broad assumptions — like “go after high income” or “target by age group” — marketers have an opportunity to uncover more precise combinations, often where they least expect them. The analysis reveals just how much performance can hinge on thoughtful, data-backed audiences.
“This isn't guesswork — it's measured behavior," said Mike Finnerty, SVP Marketing Solutions at TransUnion. "Recognizing the impact of the best targeting decisions on the bottom line and pulling out actionable insights is only possible when you have a persistent view of identity that runs through every marketing activity, from planning to measurement."
Ultimately, this analysis illustrates the true potential of multi-dimensional targeting, putting it alongside engaging creative as a key driver of marketing performance.
"In today's marketing landscape, great creative and thoughtful precise targeting are both needed to create the best outcomes. And it is worth noting that targeting decisions by themselves, especially more advanced targeting strategies, are independently impactful," concluded Spiegel.
Click here to learn more about TruAudience audience solutions.
Methodology
The analysis is based on Q4 2024 campaign data from 25 brands across five industries, with at least two brands per industry. Quarterly spend ranged from $5 million to over $100 million per brand. In total, $1.5 billion in campaign spend and over 18.4 billion events across a broad set of addressable paid media channels, including audio, connected TV, display, search, social and video were analyzed using TransUnion’s MTA platform and TruAudience® identity graph. Return on ad spend reflects actual ad exposure and conversion outcomes at the household level.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good
®
— and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.
http://www.transunion.com/business
Contact | Dave Blumberg |
TransUnion | |
[email protected] | |
Telephone | 312-972-6646 |