Background

Nescafe, the renowned global coffee brand by Nestlé, has established a significant presence in Indonesia, captivating the nation with its rich and diverse range of coffee products. 

Over the years, Nescafe has become synonymous with high-quality instant coffee, catering to the diverse tastes and preferences of Indonesian consumers. 

Nestlé heavily invests in Reach and Frequency (R&F) campaigns on Meta as part of their strategy to remain top-of-mind for their audiences in Indonesia. However, the team wanted to ascertain if R&F campaigns are the most cost-efficient route for the brand.  

Aim: To find the most cost-efficient route for the brand using auction-based campaigns on Meta instead of R&F.

Insights & Strategy

Dentsu Indonesia identified three locations where Reach and Frequency spending were high in Indonesia and decided to put these locations to the test with an auction-based Meta campaign. The team collaborated with Dentsu’s Data Sciences and Products team, unleashing the full potential of their AI-powered campaign optimisation suite, Dentsu Marketing Cloud (DMC). DMC allowed us to identify and seize every optimisation opportunity within the auction-based campaign, maximising its impact and delivering best-in-class outcomes both in terms of efficiency and effectiveness. 

Execution

An A/B test was conducted with an equal budget split between the auction-based and R&F campaigns to draw conclusive results. We chose DMC AI-powered optimiser to deliver cost efficiency while aiming to achieve the same reach as R&F. 

The Psychographics section under DMC Optimiser, helped the team understand which interests could be underperforming for each location ad set. The team used these indicators to remove such interests and replaced these with the interest segments that were recommended by DMC as relevant basis for the performing segments. 

Results

Through DMC, we could identify demographic segments that were underperforming. For these segments, we could adjust the bids as per DMC’s recommendations. DMC considers multiple variables that impact performance and determines the most optimal bids for the ad set. We followed a similar bid adjustments strategy to optimise the costs for ad delivery across Facebook, Instagram and Messenger.  

DMC AI-driven optimization on auction campaign delivered: 

13% Improvement in CPM whilst maintaining 100% reach KPI in comparison to R&F campaign 

Client quote

"DMC is the driving force behind the next wave of technological breakthroughs, it helps us discover new ideas to optimize our campaign therefore we can maximize our efficiency, especially for awareness campaign objective."

Karima Alatas (Media Manager, Nestlé, Indonesia)

Agency Quote

"Illustrating the potential utility of dentsu's tool capabilities and the application of AI, Nescafé Indonesia achieved an impressive 13% CPM boost in their auction-based campaign. This accomplishment has not only outperformed traditional Reach and Frequency campaigns on Meta but also emphasized the versatility of these tools. The success of Nescafé's campaign highlights the potential application of dentsu's tools across various verticals, catering to the unique needs of different clients in the marketing landscape."

Vinay Mohan (Assc. Digital Director, dentsu Indonesia)

"DMC assists us in optimizing campaigns with superior tools that cannot be implemented through social platforms. The optimization of campaign bid strategies, interest targeting, and available placement bids within DMC significantly contributes to achieving a lower CPM and higher impressions."

Fendy Hastomo Mu’arief (Social Operations Manager, dentsu Indonesia)