In times of economic uncertainty, prioritising profitability and evaluating the effectiveness of marketing investments becomes paramount.
Marketing Mix Models (MMMs) are a crucial tool for marketers to assess advertising impact across various channels and optimise spends, especially in industries like Consumer Packaged Goods (CPG), that engage in indirect consumer sales.
Through a comprehensive aggregate study, Nielsen consolidated results from multiple Marketing Mix Models for a diverse mix of CPG brands in the Middle East and Africa, spanning categories including Health, Beauty, Home Care and Food & Beverage, over 4 year period from 2019 to 2022.
Meta is the most efficient platform across other measured channels in this meta-analysis study
- When analysing overall platform ROAS performance to total media, Meta drives 1.7x higher ROAS in MENA and 2.1x higher ROAS in SSA vs total media
- Meta generates a ROAS of $1.74 in the Middle East which is 1.7x higher compared to TV and 1.3x higher compared to other social. For South Africa, Meta generates a ROAS of $1.67, which is 2.6x higher compared to TV and 1.4x higher compared to total digital.
- In the short term, Meta’s ROAS ($1.74) exceeds the Middle East Digital Benchmark by 47%. Additionally, 6.4% of Total Media Investment is behind Meta driving 10.4% of Media Revenue in MENA. For South Africa, Meta’s ROAS ($1.67) exceeds the South Africa digital benchmark by 42%. Additionally, 7% of total media Investment is behind Meta driving 17% of media revenue in South Africa.
Meta ads generate a significant & measurable impact on brand sales
Across the analyses conducted in the Middle East and Africa, digital penetration continues to be substantial and on the rise. As a result, digital channels drive a higher sales proportion compared to media share of spend.
- For MENA, digital investments have been consistently growing from 2018 with a 41% investment share in 2022 vs 8% in 2015-2022. Digital drives a higher fair share of Media spend and contributes to 32% of total media spend driving 36% of total media revenue
- For SSA, digital contributes to 22% of total media spend, driving 41% of total media revenue
Moreover, in the Middle East and in Sub-Saharan Africa, advertisers stand to benefit from continuity and longer durations of their campaigns on the platform.
- Leveraging these insights along with learnings from the ‘Beyond Brilliant Basics,’ maintaining a frequency of 1.5-2 times a week, while aiming for an absolute reach of 11-20% of the population is key in achieving better ROAS.
According to Ben Samuel, the Regional VP of Marketing Effectiveness at Nielsen for the Middle East, Africa & Turkey: “In the ever-evolving landscape of consumer behaviour and media consumption, marketers must steer through uncertainty with precision when it comes to their investments.
“There is a renewed recognition of the importance of accurately and sustainably measuring marketing activities; with Marketing Mix Models, once again proving to be a leading measurement solution for businesses to navigate through such turbulent times.
“Through this MMM meta-analysis, advertisers can unlock a guide to their media planning; to optimise and fine-tune their investments on the Meta platform, steering towards higher ROAS and effectiveness.”
With an eye to 2024, we believe that MMM will continue to thrive as a relatively future-proof measurement solution for marketers seeking actionable insights into cross-channel marketing and non-marketing efforts.
Rasheeqa Jacquesson, Marketing Science Lead, Meta, Middle East and Africa
