TransUnion Analysis Reveals Massive Performance Gap Between Best and Worst Audience Targeting Decisions

Rhea-AI Summary

TransUnion's analysis of real-world campaigns reveals a significant performance gap in audience targeting decisions. The study, based on data from 25 clients across five verticals, shows that optimal targeting can yield up to 9x return on ad spend (ROAS) when combining six consumer characteristics correctly. Conversely, poor targeting decisions can result in up to -90% ROAS. The analysis evaluated 26 targeting attributes across categories like age, income, and neighborhood type. With single characteristic targeting, correct decisions yielded 97% ROAS while wrong decisions resulted in -49% ROAS. The impact compounds with multiple characteristics: two optimal traits showed 3.6X ROAS upside, three traits yielded 7.2X ROAS upside. The study analyzed $1.5 billion in campaign spend and 18.4 billion events across various media channels.

Positive

• 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

Negative

• 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

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 –90% ROAS, placing fresh emphasis on the importance of audience building to the bottom line.

“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	97%		3.6X		7.2X		8.3X		9X
Wrong Decisions	-49%		-78%		-88%		-89%		-90%

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 $5 million to over $100 million per brand. In total, $1.5 billion in campaign spend and over 18.4 billion events across a broad set of addressable paid media channels, including audio, connected TV, display, search, social and video were analyzed using TransUnion’s MTA platform and TruAudience® identity graph. Return on ad spend reflects actual ad exposure and conversion outcomes at the household level.

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
E-mail	david.blumberg@transunion.com
Telephone	312-972-6646

FAQ

What is the maximum ROAS improvement possible with TRU's optimal audience targeting?

According to TransUnion's analysis, optimal audience targeting using six combined characteristics can achieve up to 9x return on ad spend (ROAS).

How does wrong targeting affect ROAS according to TransUnion's study?

Wrong targeting decisions can lead to severely negative returns, with up to -90% ROAS when multiple characteristics are incorrectly combined.

What was the scope of TransUnion's targeting analysis study?

The study analyzed $1.5 billion in campaign spend and 18.4 billion events from 25 brands across five industries, with quarterly spend ranging from $5 million to over $100 million per brand.

How does combining multiple targeting characteristics affect ROAS?

Combining characteristics amplifies results: two optimal traits yield 3.6X ROAS, three traits yield 7.2X ROAS, and six traits can achieve 9X ROAS when done correctly.

What targeting attributes did TransUnion evaluate in their study?

The analysis evaluated 26 targeting attributes across six categories including age, income, presence of children, and neighborhood type.