TransUnion Analysis Reveals Massive Performance Gap Between Best and Worst Audience Targeting Decisions
- Analysis demonstrates potential for up to 9x return on ad spend with optimal targeting decisions
- Study based on substantial real-world data: $1.5 billion in campaign spend across 25 brands
- Even single characteristic targeting can yield 97% ROAS when done correctly
- Research covers broad range of media channels including audio, CTV, display, search, social and video
- Wrong targeting decisions can result in severe negative returns up to -90% ROAS
- Poor targeting compounds negative effects as more characteristics are added
- Single characteristic wrong decisions result in -49% ROAS
- Complexity increases with multiple targeting attributes, raising risk of poor decisions
Insights
TransUnion's analysis reveals optimal audience targeting can yield 9X ROAS while poor targeting results in 90% losses, demonstrating strategic targeting's financial impact.
TransUnion's comprehensive analysis across 25 brands and $1.5 billion in campaign spend delivers compelling evidence of how audience targeting precision directly impacts financial performance. The data reveals a clear mathematical progression in return on ad spend (ROAS) as targeting sophistication increases—with optimal six-characteristic targeting yielding a remarkable
What makes this analysis particularly valuable is its real-world foundation. Rather than theoretical models, TransUnion analyzed 18.4 billion actual marketing events across multiple channels including connected TV, audio, display, search, social and video. The cross-vertical nature of the sample—spanning five industries with multiple brands per category—demonstrates the universal applicability of these findings regardless of sector.
The most significant insight is the compounding effect of targeting decisions. Each additional targeting parameter exponentially impacts performance—both positively and negatively. This creates an increasingly wide performance gap between optimal and sub-optimal decisions, highlighting how seemingly minor targeting choices compound into major financial consequences.
For marketers, this represents a fundamental shift in how audience strategy should be approached. Rather than relying on broad demographic assumptions, the data supports a more sophisticated, multi-dimensional approach to audience building that can deliver transformative financial outcomes when executed correctly—and potentially catastrophic results when implemented poorly.
As targeting choices become more sophisticated, the impact on return on ad spend compounds — for better or worse
CHICAGO, June 12, 2025 (GLOBE NEWSWIRE) -- An analysis from TransUnion (NYSE: TRU) sheds new light on the impact of audience composition on marketing performance, showing that making the best targeting decisions can have a compounding effect on return on ad spend (ROAS}—an upside of up to 9x.
The analysis, based on real-world campaigns from 25 TransUnion measurement clients across five verticals, revealed a widening performance gap as audiences became more targeted: An audience built with two optimal consumer traits had a 3.6X ROAS upside, while an audience with three optimal traits had a 7.2X ROAS upside.
Conversely, the analysis also highlights the risk of making sub-optimal targeting decisions, i.e., the more campaigns were targeted to the wrong audience segments, the worse they performed. At the farthest end of that spectrum, mistargeted campaigns saw –
“In a world with thousands of targeting choices, the challenge is selecting the most effective option from many that appear similar,” said Matt Spiegel, EVP of TruAudience Growth Strategy. “Our data proves that even within common attributes like income or age, the performance difference can be massive.”
Positive and Negative Impact of Targeting Sophistication on ROAS
| Single Characteristic Audience | Two Characteristics Combined | Three Characteristics Combined | Four Characteristics Combined | Six Characteristics Combined | ||||||
| Correct Decisions | 3.6X | 7.2X | 8.3X | 9X | ||||||
| Wrong Decisions | - | - | - | - | - | |||||
The analysis evaluated 26 targeting attributes across six distinct categories such as age, income, presence of children, and neighborhood type. The findings showed that even subtle variations in targeting led to significant swings in return on ad spend — reinforcing the need for smarter audience strategy.
Rather than defaulting to broad assumptions — like “go after high income” or “target by age group” — marketers have an opportunity to uncover more precise combinations, often where they least expect them. The analysis reveals just how much performance can hinge on thoughtful, data-backed audiences.
“This isn't guesswork — it's measured behavior," said Mike Finnerty, SVP Marketing Solutions at TransUnion. "Recognizing the impact of the best targeting decisions on the bottom line and pulling out actionable insights is only possible when you have a persistent view of identity that runs through every marketing activity, from planning to measurement."
Ultimately, this analysis illustrates the true potential of multi-dimensional targeting, putting it alongside engaging creative as a key driver of marketing performance.
"In today's marketing landscape, great creative and thoughtful precise targeting are both needed to create the best outcomes. And it is worth noting that targeting decisions by themselves, especially more advanced targeting strategies, are independently impactful," concluded Spiegel.
Click here to learn more about TruAudience audience solutions.
Methodology
The analysis is based on Q4 2024 campaign data from 25 brands across five industries, with at least two brands per industry. Quarterly spend ranged from
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business
| Contact | Dave Blumberg |
| TransUnion | |
| david.blumberg@transunion.com | |
| Telephone | 312-972-6646 |
FAQ
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What targeting attributes did TransUnion evaluate in their study?
