Tag: automation of advertising

Evolution of MMO. Part 1: MMO through Years

Accenture is one of the top global consulting companies, that provides a wide range of services and solutions across over 40 industries and different business functions in more than 120 countries. Accenture combines business and technology to improve their clients’ performance. In one of their articles they cover the development of Marketing Mix Modeling and Optimization through years including the latest techniques and implementation of granular data in MMM.  This article is a summary of how MM Optimization has changed over the last 40-30 years becoming more effective with every innovation, yet it’s not perfect, and has both advantages and disadvantages. Promotion is vital for a business’s success, and MMO helps to make sure that different media channels are used in the most effective way by creating a statistical model and analyzing its results to ensure optimal budget allocation.  Here 3 following stages of development will be discussed Similar Linear Regression Mixed Model State Space Model The article is presented as a case study of a toy manufacturer ToyCo with a $100M budget, that wants to know what part of their sales can be attributed to marketing and which ad channels have more impact on sales. Similar Linear Regression Marketers… Read more »

Three Steps to Transform Marketing Agencies

According to a global consulting firm PwC, most marketing agencies all over the world are using a no longer effective business model and should start making significant changes to catch up with their clients’ needs. They should take a much more integrated approach to all their operations. This article is an overview of the current situation in the industry and four models that can be implemented to create a next-generation marketing agency. Each strategy carries certain risks and requires to overcome some obstacles, but advantages far outweigh the disadvantages and provide new opportunities. Over the last decades, most large agencies have taken over numerous smaller ones in spheres like digital, media planning and buying, branding, and creative services. Despite being financially accountable to their holding company, these subsidiaries act independently and even compete with each other. There is nothing wrong with competition, as it sure helps to drive progress and generate the best ideas, but today marketing agencies have enough outside rivals to compete with as it is, for example platforms like Facebook and Adobe or in-house agencies established by some companies. Procter&Gambe created its own marketing department and managed to save $750 million on advertising and production costs in… Read more »

McKinsey Revolutionary Media Mix Optimization

OMR Festival 2019 took place in Hamburg on 12th and 13th of May 2019. This event brought together international stars of the digital marketing, promising new players and absolute experts to provide a thorough analysis of relevant marketing trends. Top speakers included the representatives of giants like Adobe, Google, Facebook & co. A global management consulting firm McKinsey & Company also presented their inspiring innovations concerning “Marketing Operating Model”. They propose omnichannel person based optimization that has already proved effective and will save $15mln on marketing for Optus – the second largest telecommunications company in Australia.   To fully understand how this new generation solution changes the industry we should start with the current standing; and the biggest challenge we are facing today is that many marketers still struggle with MROI measurement and in 60% of cases are unable to estimate either long-term or short-term marketing impact. Various approaches available today help to answer the MROI question, but none is flawless. A/B testing is a simple technique that allows to see incremental impact by comparing two groups, test and control ones. It helps to identify more successful media tactics and improve performance, but it cannot deal with a more complex… Read more »

Three Pillars of Procter&Gamble Ad Revolution

The debate about the transparency issues in the advertising industry has been gaining momentum recently, and it all started with Jon Mandel’s 2015 speech at the Association of National Advertisers’ (ANA) annual media conference. The following year, an independent research was conducted by K2 Intelligence LLC (“K2”) which showed that numerous non-transparent business practices, such as rebates and problematic principal transactions, had been taking place on a regular basis across the whole media spectrum. Numerous evidence suggested that some advertising agencies had taken advantage of their position failing to act in the best interests of the advertisers. The incident took an unprecedented turn in 2018 when the FBI had to intervene and ask the ANA and its members for cooperation. At this point, there is nothing conclusive yet, no accusations or charges have been put forward, but the FBI assumes there may be numerous potential financial fraud victims and wants them to assist in such a massive investigation, which might reveal offences far more serious than financial fraud like conspiracy and even racketeering. Such a scandal couldn’t go by unnoticed and very naturally caused some revolutionary changes in advertising industry, so companies started to take action. One of the world’s… Read more »

Visiting StartUp Day

StartUp Day is a major Baltic business event that unites the business community and the start-ups. Here, experts from various fields and emerging entrepreneurs can discuss business at its different stages. Visiting miscellaneous seminars, talks and workshops included in the event's primary line-up allows young businesspeople to gain inspiration and experience from the strongest and most established companies. Investments, smart production, cutting-edge technology are all major topics discussed at StartUp Day. AdoptoMedia did not just take part in StartUp Day but ranked in top 10 best projects of the Baltic region. At the event's final section, the company CEO Alexey Kuznetcov talked to international experts and investors from Finland and Estonia about AdoptoMedia's flagship product: CheckMedia Solution, a software suite for allocating budgets among different advertising channels. CheckMedia Solution can calculate an optimum marketing budget depending on the client company's goals or financial capacity, as well as the current economic situation. The talk briefly touched on  AdoptoMedia's existing achievements, major clients, technology in-use and the upcoming plans."2017 was all about preparing for expanding internationally, handling all that pertains to intellectual property, localizing the product and forming partnerships with representatives from Italy, Germany and Israel. Entering those markets will allow the company to increase capitalization over… Read more »

Case Study: Automating the Work of an Ad Agency

Major ad agencies operate an extensive number of ad projects. A client's single ad campaign can include upwards of 10,000 ad media. Large-scale campaigns require smart planning with account for all the nuances pertaining to the purchase of ad inventory, and proper gathering of all reports and documents once the placements expire. Characteristics of a major ad agency How do major ad agencies operate, specifically? Many clients: the agency managers service over 100 clients; Ads are bought in more than 100,000 media units annually; The agency has about 70 employees; The agency works with more than 870 contractors; Ads are placed in more than 650 cities, while different employees handle the buying in different cities; The overall process of media planning, buying, placement and closing of an ad campaign involves employees from different departments: – client service managers handling client support; – buying managers handling the media buying; – the document control or accounting department responsible for the closing of deals. This results in the following difficulties: the approval process takes a long time, since all matters are discussed and handled via email, both internally and when operating with clients and contractors; the launch of an ad campaign consists of multiple… Read more »