Brand marketing leaders across retail are feeling immense pressures to acquire and retain new shoppers. While traditional advertising methodologies aim to increase brand awareness, the Ibotta Performance Network (IPN) enables advertisers to take a full-funnel approach:
Securing visibility and preference, and actual sales.
“Our vision for the Ibotta Performance Network is to deliver performance marketing at scale, and thanks to the reach of our network and our first two retail partners – Walmart and Dollar General – we are exceeding those goals,” said Bryan Leach, founder and Chief Executive Officer at Ibotta. “With this new spend guarantee, we are tripling down on our commitment to our brand and manufacturer partners, and ensuring that we provide the reach and return they need during these highly competitive times.”
As the IPN celebrates its first anniversary, Ibotta debuts a new advertising spend guarantee that commits to a 3x return on investment for brands and manufacturers who participate in the Rewards-as-a-Service (RAAS) platform.
How it works
The 3X Guarantee applies to ROAS (Return on Ad Spend)
ROAS Definition: Gross revenue generated for every dollar spent
ROAS Calculation: Campaign revenue* / Campaign cost**
*Campaign revenue = incentivized + organic purchases
**Campaign cost = Ibotta fee per redemption (excl. user reward, ad products, and set up fees)
Anniversary highlights of the IPN
A leading deodorant brand saw:
- 1,067% sales lift
- 70% purchase cycle decrease
- 57% of shoppers who redeemed their offers were new-to-category or competitive switchers
A prominent donut brand saw:
- 882% sales lift
- 83% purchase cycle decrease
- 60% of shoppers who redeemed their offers were new-to-category or competitive switchers
Advertisers on the IPN average:
- 50% lift in incremental units sold
- 42% of conversions being new-to-brand
- 7X ROAS
Given the impressive 7x ROAS average across campaigns that ran incrementality tests in recent months, Ibotta’s leadership team began a deeper evaluation of aggregate performance results, culminating in the new performance guarantee which will run for a limited time.
Where consumers stand
Deals & cash back matter most to shoppers, according to recent surveys conducted by Ibotta.
At a time when shoppers are already facing tremendous financial strain and trading down more readily than ever, FSIs are in rapid decline meaning shoppers are missing added value they’ve come to rely on.
What’s more, private label is gaining market share — 68% of categories impacted by private label switching (2022 – 2023) saw purchasers shifting from brands to private label, as noted in the latest Seasonality Series piece by the IPN.
Brands working with Ibotta and the IPN are combating these challenges simultaneously:
- Inflation and a pocketbook-pinch economy
- The consumer need for added value
- The rise of private label
On average, 8,584 cash back rewards offers are available to shoppers daily.
Lock in your next campaign
Ibotta’s Client Partnerships team works in close collaboration with yours to leverage the IPN in tailored fashion, according to your unique objectives, to maximize results.
To get further information about leveraging the 3x ROAS guarantee — in addition to custom insights into effective promotional strategies to drive incremental sales, shopper loyalty, and market share — talk with your rep or inquire here.
