In 2022, UPS set up a dual goal for media – to drive brand relevance and revenue. For UPS, Brand Relevance is a composite score of consideration that speaks to reliability and trustworthiness, Momentum which is about being innovative from both cultural and technology perspectives and ESG (Environmental, Social and Governance) which pertains to corporate responsibility, being diverse and inclusive. UPS’s media goals were to drive brand relevance growth with a focus on ESG in 2022. However, the media budget was reduced by almost 20% year over year. This was also in the face of economic headwinds in 2022.

The media team’s challenge was to address these questions - What is the optimal media allocation across channels? How to plan, allocate, maximize budget for diversity initiatives? What are the right media channels, strategies and tactics to support such initiatives to maximize the client’s objectives?

FastMMM produced insights that formed the underlying basis for a strategy that aimed at improving overall performance and optimizations to drive higher ROI from diversity initiatives. The model identified many areas of opportunity.

1. Saturated or inefficiently flighted media channels were identified to reallocate budget and activity optimally.

2. Traditionally under- attributed upper funnel & low signal channels were accurately measured by FastMMM. It was strategized to leverage them for brand relevance growth through diversity initiatives.

3. Video emerged as the winner within social, providing scope to lean into higher ROI driving formats relevant for diversity tactics.

4. Emerging channels such as TikTok showed promising ROI, opening newer audiences for wider reach of the diversity initiatives.

5. The initiatives benefitted from Influencers due to their high ROI as measured by FastMMM, and targeted reach within diverse communities.

UPS scaled its diversity initiatives to 9 campaigns in 2022 including Proudly Unstoppable LatinX, Womens Owned, Black Owned etc., after the model ascertained their positive ROI impact.

The team implemented model’s learnings across digital channels quarterly throughout 2022. Spend from saturated channels was reallocated towards less saturated channels such as Social, CTV and OLV ensuring optimal levels of activity. UPS started executing media in previously unmeasurable/ low attribution tactics e.g. Safari, mobile & CTV.

Share of activity for video on Social more than doubled from 2021 to 2022. This was a key tactic utilized in all diversity initiatives. The model identified Tik Tok as a driver of ROI within Diversity initiatives and hence it was scaled to account for >30% of activity.

The model proved the efficacy of influencers. This led UPS to expand the influencer program to 11 influencers including Simu Liu, Monet McMichael, Coco etc.

Driven by the model’s recommendations, UPS launched 9 diversity campaigns in 2022, - representing over 1 Billion impressions, targeting diverse audiences such as LatinX, Women owned, LGBTQ+, Asian American & Black owned small businesses.

UPS gained 3 points on its ESG score in Q4 ‘22 vs Q4 ’21 on their brand relevance survey.

Among diverse audiences, Kantar reported a 6% lift vs control in UPS's perception as a diverse and inclusive company and 7% lift in consideration.

Diversity initiatives’ ROI exceeded the ROI of performance campaigns by 11% with some campaigns showing ~2X ROI of performance.

The strategy led to an 18% improvement YOY in ROI, resulting in over $35M in additional incremental revenue.

The revenue from ROI improvements alone has paid for the model 100 times over. UPS is now expanding the model to lean into diversity efforts globally.