Tag: MMM

Cross-media measurement tools

One of the topical problems in 2019 is digital advertising and cross-media measurement. Since there is a growing number of complex techniques and methodologies, but no unified approach, most companies lack expertise to deal with it. Here we cover various measurement tools and their cross-platform application. Created in 1997, Internet Advertising Bureau UK (IAB UK) is a trade association, promoting sustainable development, the best practices and standards for advertisers, agencies, and media owners. Their goal is to address challenges the industry is facing and offer some solutions. Our article is an overview of the guide for marketers on best practices today that AIB prepared with MTM. Here you will find some useful advice on what models and techniques to use for digital advertising measurement within the environment of various media, both large-scale and more granular analyses. You will see how to combine them to your best advantage and create your own measurement strategy. There is no simple answer and solution to successful and effective advertising measurement because so many aspects need to be considered, like audience, media consumption, views, individual and combined performance of media channels, ad effectiveness and business outcomes. This article covers the last two aspects in the… Read more »

Evolution of MMO. Part 2: Breakthrough.

  Over the last 40 years there have been some significant changes in Marketing Mix Optimisation: not only different models came and went, but also new advertising channels appeared. The digital revolution has changed the industry significantly, allowing companies to reach more potential customers and make better targeted ads. With so many new marketing channels the issue of optimal budget allocation is as relevant as ever. And some companies are unaware that huge databases they possess are the key to making more informed marketing decisions. By using this high-quality data along with improved techniques companies can react quickly to changes in consumer behavior, which is crucial in the digital age, where advertising campaigns are short-lived, and without the needed data even the most sophisticated models are useless. Accenture successfully introduced more granular data into Media Mix Optimization models complying with GDPR (General Data Protection Regulation) as a result of their partnership with Facebook. Firstly, Facebook records the results of paid advertising campaigns on their platform, then receives client’s consent and finally provides the aggregated data to Accenture, that uses the data in MMM. Such almost real-time feedback allows creating and changing Media Mix Models much quicker. Another perk of this… Read more »

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 »

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 »

Media Measurement Tools

According to EXL Service, retail CMOs and marketing managers invest 8-10% of their sales revenue into marketing. An important thing here is to distribute this budget between different media channels in the most effective way and make sure that all the money spent pays off. What we need is metrics that accurately reflect ROI on a sufficiently granular level; unfortunately for now, media measurement is not keeping pace with business needs in this rapidly changing media landscape, shifting from TV to a multi platform video. On CIMM’s request, the current state of marketing/media ROI analysis was analyzed. The Coalition for Innovative Media Measurement (CIMM) is a group of content providers, buyers and sellers promoting innovation for Television, Internet, Mobile and cross platform audience measurement in the USA. Among CIMM members are CBS, Discovery, NBC, P&G and The Walt Disney Company. In this article we are going to provide a brief overview and comparison of two major tools that are currently used to measure marketing/media ROI, which are: Marketing Mix Models (MMM) Attribution ​ Attribution and MMM are different analyses that are implemented with the same purpose: to find out if the budget is right, how to fine tune the media… Read more »