Volkswagen
TikTok proved to deliver lower costs and higher efficiencies than other Digital media and TV in 2023, driving significant growth in both awareness and sales
The Objective
Beyond the Hype: Measuring True Channel Performance
Volkswagen aimed to drive performance-focused outcomes, including efficiency, momentum and incremental budget recommendations. The goal was to uncover how effectively each channel contributed to Volkswagen’s success, crafting a clear picture of their impact on the business. By focusing on results without favoring any specific platform or technology, the approach aimed to ensure an unbiased, data-driven understanding of what truly drives performance.
The Solution
From Underperforming to High-Impact
A Media Mix Modeling study conducted in collaboration with Annalect identified TikTok as one of the most efficient digital platforms. This methodology evaluated the incremental impact of each channel by isolating their specific contributions to overall performance, providing a data-driven foundation for optimizing investments.
The MMM allowed Volkswagen to reallocate funds from underperforming channels, including Programmatic and Display, towards TikTok for greater returns. They crafted new strategies, combining "Always On" campaigns with premium formats like TopView, Pulse and Focused Views to enhance upper-funnel visibility. These strategic investments in TikTok formats enabled Volkswagen to increase incremental contributions while reducing costs.
The ultimate goal was to build a data-driven marketing approach that maximized short-term sales impact and long-term brand equity. By focusing on scalable, efficient channels, Volkswagen achieved measurable improvements in campaign efficiency and set the foundation for sustainable media strategies.
The Results
Unlocking Performance with TikTok
TikTok delivered 3x the efficiency of other digital media platforms and contributed 11% of the total incremental performance in 2023. Incremental contributions grew by +30% year over year, solidifying TikTok’s role as the most impactful platform for lead generation and performance. TikTok’s performance highlights its ability to drive efficient, scalable campaigns that align with both brand awareness and performance objectives. Compared to other platforms like Programmatic and Display, which underperformed with efficiency gaps of -68% and -40%, respectively, TikTok demonstrated a clear advantage in delivering measurable results across campaigns.
This analysis underscores its potential as a strategic investment for both brand awareness and performance goals, solidifying its position as the leading digital channel for maximizing ROI. Leveraging these insights, Volkswagen has successfully reallocated budgets to optimize efficiencies, prioritizing mid and low funnel campaigns within TikTok.
