Overstock.com's Media Planning and Media Buying Case Study:
The marketing team's biggest concern was that people would not respond and the campaign would be difficult to track. Patrick [Byrne, Overstock Founder and CEO] made it clear that if the campaign was not ROI positive, the partnership between Ocean Media and Overstock would be brief.
Ocean Media developed an initial media test that launched in September of 2003. Based on early traction, the campaign expanded throughout the 4th quarter. The campaign included network radio, local radio, national cable, print and opportunistic network television.
Results- the launch:
Overstock.com attracted 744,000 new customers during the fourth quarter of 2003. In addition, their sales increased from $41.5 million in Q4 2002 to $123.2 million in Q4 2003. Traffic during the quarter jumped from 5 million unique visitors to over 11 million unique visitors (comScore). For the 4th quarter, Overstock.com beat Wall Street estimates by thirty million dollars (1/28/04) and has credited much of their success to the marketing initiatives.
Nine year partnership continues to expand
Ocean Media and Overstock.com have been working together for over nine years. We continue to review performance metrics on a daily basis making the media accountable. Tracking the campaign has allowed us to develop and refine the most effective media mix.
In 2005, Overstock.com purchased a spot during the Super Bowl. That was a first for them and for Ocean Media. They have been an advertiser in three of the last four Super Bowls. As always ROI was measured very closely- albeit over a longer time frame.
As we embark on another year, Overstock.com's media mix has grown to include national cable, local broadcast, network television, radio and interactive.
The brand awareness for Overstock has grown as a result of our ROI efforts. In 2004 their brand awareness was at 4% and as of 2010 it reached 68% (source Abacus Study).