Riyadh, Saudi Arabia; 15 August 2023: TikTok has showcased its impact for brands with a Marketing Mix Modeling (MMM) analysis, conducted by Analytics Edge, demonstrating its sales effectiveness for confectionery conglomerate Mondelez’s Oreo brand in the Kingdom of Saudi Arabia. The Mondelez MMM highlights TikTok's ability to deliver a higher return on ad spend (ROAS), validates the powerful appeal of TikTok’s creator-centric content and community, and creates a new template for brands to adopt an effective marketing strategy that truly drives incremental sales.
MMM is a measurement solution that uses historical data to analyze the sales effectiveness of marketing activities, in order to optimize tactics and delivery mediums. Following a trajectory of growth on TikTok in 2021, Mondelez utilized this measurement solution after adopting a “TikTok-First” approach in the first half of 2022, and TikTok launched the MMM analysis for Oreo, covering the first six months of that year, in partnership with Analytics Edge.
The latest MMM analysis showed TikTok's major impact on Oreo's overall performance: 1.7 times better sales effectiveness and 1.9 times higher ROAS compared to other digital platforms. The MMM not only puts the spotlight on the secret recipe of the “TikTok-First” approach – More consistent presence on TikTok to drive stronger efficiencies – but also highlights how TikTok creates more targeted opportunities for brands to build moments of discovery, awareness, and buzz than any other platform.
“We are thrilled with the results of the MMM analysis we conducted for Mondelez, as it is a true testament to the power of TikTok and the platform's ability to drive incremental sales and strong ROAS,” said Vipul Jain, Head of Measurement, Middle East, Africa, Turkey and Eastern Europe - TikTok. “We're always looking at how to best help brands make smarter advertising decisions on TikTok with a full set of measurement tools made to drive full-funnel business impact. TikTok has changed how people and brands around the world create and share content, and we're bringing that same energy to our approach to measurement solutions, too. Our measurement solutions are multi-layered and built to be customizable based on the measurement goals an advertiser has identified.'
Mondelez is at the forefront of implementing data-driven informed budget allocation to continuously optimize their media dollar efficiencies, and partnering with TikTok was one step forward to achieving that.
'We partnered with Analytics Edge to evaluate the return on our media investments across platforms including TikTok, and they acquired MMM data at a precise level of granularity for our campaigns to enable us to develop actionable and insightful models. Moreover, we utilized MMM to assess the ROAS as well as the effectiveness of our Mondelez ads on TikTok from different lenses – such as campaign duration, ad formats, and impression thresholds – to determine precise execution strategies which ultimately have an optimum impact in driving sales,” said Krinio Christaras, Head of Consumer Experience MENAP, Mondelez.
The Mondelez MMM also highlights the appeal of community commerce in amplifying brands and reinforces the value of a platform where the community is at the center of the shopping experience. Publicis Groupe/Spark Foundry supported the analysis and will also be driving media strategies and implementing insights into upcoming Mondelez Oreo campaigns.