Driving media effectiveness through predictive modeling
Our insights help a leading European manufacturer improve return on investment from media and marketing.
Our client needed to build a scalable solution that would provide fact-based decision support for its global marketing teams, and enable them to improve the effectiveness and efficiency of their above- and below-the-line activities. The company decided to introduce marketing mix modeling to optimize its marketing return on investment (ROI) across key product ranges and geographies.
Our marketing mix modeling solution enables marketers to accurately predict the impact of various marketing tactics on sales. In addition to offering our client industry-specific expertise, our models use our store-level point of sale data to offer more accurate insight into how different media (for example, print, online and television) drive sales. We built around 40 models for key domestic appliance categories across five key markets, combining our point of sale tracking with the company’s promotional, digital and traditional media planning data.
Our marketing mix models have helped the manufacturer shift towards a more fact-based, metrics-driven approach to making marketing decisions. For example, we showed that the company’s digital media investments drove sales, but that the client still needed a substantial investment in non-digital marketing mechanics. We found that advertising carried sales but there were a lot of room for improvement. We proved that digital media was particularly effective at generating sales in online channels. The impact of digital media on offline sales was significant but much lower. Despite high sales lift, our model also revealed that digital and traditional mechanics alike were showing lower marginal returns as a result of saturation, affecting spending efficiency. Our client could thus simulate the outcome of its future marketing plans, focus better on potential ROI, craft better strategies and tactics, and connect campaign investment to financial performance.