Half the money I spend on advertising is wasted; the trouble is, I don’t know which half…
Econometric models allow us to calculate the impact of various types of advertising on the business KPI, e.g. the level of sales. The result of econometric modeling is the optimal distribution of advertising across media channels, which helps save up to 15% of the advertising budget.
When advertising is planned on the Internet, TV, radio and the press, a uniform methodology is used to analyze the audience’s behavior, its social and demographic portrait. Geoanalytics from mobile carriers have allowed us to apply a uniform standard to OOH media buying as well. This means that advertising campaigns can be launched in accordance with uniform rules in all media types.
Companies can use uniform platform, consisting of econometric modeling tools, media planning systems and Marketing Resource Management systems (MRM systems) to plan, buy and manage advertising. ROI from using the solution can reach up to 70% in the first year of operation.
Econometric modeling finds dependency rules between business performance KPIs and the various factors that influence them. The main KPI for retail is the volume of sales. But for the telecommunications industry it is the number of users, and for banks it is the number of loans issued. Among the factors that affect KPIs are the current macroeconomic situation, the actions of competitors, the product’s consumer properties and its price on the market, the quality of customer service, and the intensity of advertising activities. By separating advertising from other factors, we can calculate the optimal budget for different media channels – TV, Internet, radio, press and OOH advertising – for each region of brand presence. When it comes to econometric modeling, typically mathematical programs, such as SPSS, are used. However, they require users to have expert-level specialized knowledge and skills. We propose using the CheckMedia Solution to generate econometric models. These models are than updated semi-automatically and can be used by any marketing specialist.
Once the advertising budget is defined with help of an econometric model, marketing specialist needs to select the most suitable advertising media for each channel. This requires detailed information on each ad inventory: how many people will see this inventory within a certain period, what is their gender, age, income, and occupation, where do they spend most of their time, etc. In fact, the task is to compare the target audience of the advertised product with the audience of the advertising inventory. Existing methodology uses a sociological approach to evaluate the audience of TV advertising, Internet ads, and advertisements on the radio and in the press. However, the same approach cannot be used to evaluate the audience of OOH advertising (outdoor, indoor and transit) due to lack of technology to perform segmentation of the people near the advertising media. We have developed a solution that analyzes the non-identifiable data on the movement of mobile users and compare the target audience of ad campaign with the audience that goes past OOH advertising media, thereby automatically selecting suitable ones.
The key advantage of this approach is the ability to combine existing methodology with geoanalytics from mobile carriers and BigData algorithms to calculate the indicators of an advertising inventory audience for all types of ad media.
Marketing specialists develop an optimal media plan based on budget constraints and audience targeting data.
All types of media: Internet, TV, radio, OOH
Non-identifiable geolocation tracks of mobile users
Release of competitors’ advertising
When, where, and how long offline and online users interact with advertising
Sales objectives, marketing budget and other restrictionsOptimal media plan
To support the process of media planning and media buying, we suggest you use the CheckMedia Solution software platform, which can be integrated with MRM system of your choice, including BrandMaker, SAP, and 1C.
Founded in 2015 in Estonia. AdoptoMedia has developed a unique software product, CheckMedia Solution, for effective self-planning of advertising (both online and offline) and for evaluating the quality of media plans provided by advertising agencies. For customers, the solution is available either as a module for the Marketing Resource Management system or as a web service. Our clients are Tier-1 telecommunication companies, banks, retailers and more.