The Power of Frequency Capping in Programmatic Advertising: An FMCG Perspective

In the world of advertising, controlling the frequency of ad exposure has always been a fundamental part of campaign planning. Traditional TV advertising has long relied on Gross Rating Points (GRPs) to measure the reach and frequency of ads, ensuring optimal audience exposure. In digital advertising, third-party cookies have served a similar function by enabling advertisers to track and manage ad frequency across platforms. However, with the impending deprecation of third-party cookies and the rise of more siloed walled gardens, managing frequency has become increasingly complex.?

For FMCG brands, where repeat purchases and brand loyalty are key, frequency capping is not just a convenience, it’s a necessity. When I worked at Reckitt, frequency exposure is a critical campaign metric but one that is difficult to optimally achieve. I was tasked with navigating the world of CTV advertising and how it would sit alongside our other digital media activations. Much like the early days of Video-on-demand (VOD) when broadcasters have, and still today, hugely reluctant on the acceptance of third party cookies, CTV providers, particularly the OEMs, have different approaches to how frequency caps are ingested by the major Demand Side Platforms (DSPs) making it difficult to truly universally frequency cap ad exposure across multiple CTV platforms.

By scaling and leveraging first-party data, FMCG brands can finely tune how often they target their consumers across DSPs, ensuring optimal exposure without overwhelming their audience. With programmatic advertising’s precision, the ability to control frequency empowers advertisers to maintain relevance and keep consumers engaged throughout the purchase journey.

The Key to Effective Frequency Control, First Party Data

With data privacy becoming more stringent and third-party cookies on the decline, first-party data has emerged as the gold standard for targeting and personalisation. Having previously worked for Nielsen Media building out data partnerships, I've seen first hand the value third party audience segments can provide to advertisers. First-party data however offers brands a clear and reliable understanding of their shoppers’ behaviours and preferences.

For FMCG brands, this level of insight is critical for frequency capping. When brands have a deeper understanding of their audience, they can set appropriate frequency limits, by platform, ensuring that their ads are delivered at just the right moments. Instead of bombarding potential shoppers with repetitive messaging, brands can use their data to orchestrate a more balanced, personalised ad experience, keeping their products top-of-mind without overwhelming the consumer.?

Avoiding the Pitfalls of Walled Gardens

In a prior article, I write about the challenges when FMCG brands rely too heavily on multiple walled gardens, such as retail media networks and social networks, to measure the effectiveness of their media. While these platforms offer access to vast datasets and insights into shopper behaviour, they often come with a catch: the data remains siloed within the walls of the platform. This limits the brand’s ability to have a unified view of its media performance across all channels.

Retail media networks have become increasingly attractive for brands due to their promise of targeting in-store with precision. Yet the more a brand relies on these closed ecosystems, the less control they have over their overall media strategy. This fragmentation can result in a lack of transparency in measuring key metrics such as ad exposure and sales lift, which is particularly problematic when it comes to understanding the impact of programmatic advertising on in-store sales.

By depending on walled gardens for data and campaign delivery, brands risk losing sight of the bigger picture. For example, a shopper who is repeatedly exposed to ads across multiple retail media platforms might exceed the optimal frequency, resulting in wasted impressions and diminishing returns.

A New Approach to Attribution, Digital Coupons

One way FMCG brands can take back control of their media spend is through digital coupons, which offer an alternative, measurable solution. Unlike walled gardens, digital couponing platforms provide brands with the ability to link both online and offline behaviours. Brands can track engagement, whether through digital media clicks or QR code scans from traditional media, and directly connect these interactions to in-store sales.

This form of attribution is critical in a post-cookie world, where direct measurement of consumer actions is increasingly difficult. Digital coupons empower brands with transparent, cross-channel insights that can be used to optimise media budgets more effectively. By knowing which ad campaigns / creatives lead to actual purchases, FMCG brands can adjust their frequency capping strategies based on real-world results, making smarter decisions about where to allocate their media dollars.

Empowering Brands with Data and Control

For FMCG brands, frequency capping needs to be addressed in media planning and having a rock solid strategy on how to optimal target shoppers throughout the purchase lifecycle. By scaling and leveraging first-party data, brands can regain control of their media exposure and avoid oversaturating potential shoppers with ads. Additionally, by shifting away from the reliance on walled gardens, brands can maintain transparency and ensure that their media spend is being used efficiently.

Digital coupons provide a powerful solution for FMCG brands to scale their first party data and measure their media effectiveness, giving them the ability to not only cap frequency appropriately but also drive tangible results. In a world where data is power, the ability to link media exposure to sales through digital couponing could be the key to unlocking more effective, cross-channel advertising strategies.

This level of insight will allow FMCG brands to not only control how often they reach their audience but also to refine their approach to media planning, ensuring that every dollar spent drives maximum impact across the shopper journey.