A standard question that faces marketers in today’s media scenario is how much to spend on online vs offline media. Will there be a negative effect if too much swing happens into one media type or another? Advanced Marketing Modelling techniques can be used to throw light on this very important issue and help optimize spends for a brand
A standard question that faces marketers in today’s media scenario is how much to spend on online vs offline media. Will there be a negative effect if too much swing happens into one media type or another? Advanced Marketing Mix Modeling techniques can be used to throw light on this very important issue and help optimize spends for a brand
Non-Linear Regression technique was used to build model which were used to identify key drivers of sales. Not only does MMM identify the impact of each type of media but also allows computation of ROI, as well as give insights at a more granular levels – for example, what works better in Facebook – Video or Static
In the cosmetic case, it was discovered that, digital media was the highest contributor of sales with Facebook being the leader and some digital channels had a high ROI compared to TV and other media. Rain Man then did deep dive analytics on digital media and generated insights that could be used profitably in future media plans.
Within digital media, as Facebook was one of the lead vehicles, RainMan used innovative technique to arrive at the quality impressions on Facebook that consisted of not only paid impressions but also a quantification of consumer engagements through various metrics of Facebook. RainMan then used its proprietary weighted technique to derive Facebook quality measure factor from customer interactions data. The total Facebook Impressions weighted with quality measure was considered for modelling.
Using the insights derived from the modelling exercise, marketing budgets for various key inputs was reallocated in favour of digital using an advanced optimization process. This resulted in an additional 8% lift in sales, more than half its overall growth in the year with no change in budgets.
Marketing mix modelling(MMM) is an analytical approach to optimize marketing efforts. It quantifies the impact of various marketing inputs,such as product features, pricing strategies, distribution channels,promotional activities, competition activity, and environmental factors, to maximize return on marketing investment ( ROMI ).
Learn how Marketing Mix Models (MMM) helped an FMCG brand increase sales by 8%. Find out how MMM optimized advertising strategies and media channels for better results.
