Tag: ROMI calculation

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 »