MARKETING ROI USE CASE


Challenge

A leading brand wanted to understand the Return On Investment from its Marketing activities and discern the performance of its media spend on offline and online advertising. To do this; it was critical to spot which channel was working better, and measure the synergy, if any, between the different channels used during the campaign for higher effectiveness and efficiency.

Solution

The leading brand was then advised to collect 3 years’ worth of data which contain KPI data, Offline and Online Advertising data, Marketing data, Brand data, Competitors data, and other External data. Depending on the nature of data, there can be controllable and uncontrollable factors:

• Controllable factors: Price, promotions, Media (TV, Print, Outdoor, Radio), Direct Marketing.

• Uncontrollable factors: Competitors, Natural Seasonality, Economic factors…

After the data has been collected, it was transformed to adapt to the widely known consumer behaviour models using the pre-programmed processors available in the processing module of our flagship modelling platform MassTer.

A model was then built using the proprietary log linear algorithm embedded into MassTer to measure the synergy between the different channels.

ROI Graph.jpg

Results

MassTer allowed to create a model that traced well the sales variation and examined the sales decomposition including all the factors that significantly influence the client KPI allowing to quantify the impact of each factor on sales and calculate ROI.

The conducted model on MassTer has shown that TV generated the highest ROI followed by Radio. There was also a synergic effect of 12%, resulting in a higher efficiency when combining these two media channels.

ROI Challenge.jpg

Insight

The results of the model constructed in MassTer were fed directly into the optimisation module. The latter allowed to conduct a Media budget optimistion resulting in an increase in TV and Radio budget at the expense of the other channels which led to 15% improvement in the performance of the same media budget.


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