Tag: ROMI

What prevents marketing and finance leaders from effective collaboration?

Digital transformation is under way and it’s changing the industry. One of the necessary conditions for successful transition is closer cooperation between marketing and finance leaders. In this article you’ll learn what causes most disagreement and where they should find more common ground.  In June 2019, Ernst & Young published a report about potential that cooperation between CMOs and SFOs has. In the age of digital transformation MarTech helps businesses better understand their clients, track activity along the customer journey, stimulate growth, and analyze data to provide insights for marketers. Marketers use everything that new technology and data offer to invest smarter and increase customer loyalty and retention and adopt a customer-focused approach to marketing. And to successfully implement this data-driven approach they need significant investments, which should be approved by CFOs, who want to hear a strong business case and ROI forecast before making any decisions. That’s why collaboration and better dialogue between the two functions is crucial in the age of digital transformation. According to Ernst & Young survey of 304 C-level managers in finance and marketing, 90% think that these departments need to be more involved into one another’s activities, and 83% believe that this cooperation will… Read more »

Research

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 »

Research
Marketing Mix Modelind, MMM, Media Mix Optimisation, targeted 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 Marketing Mix Optimization has changed over the last 40-30 years becoming more effective with every innovation, but there are still some limitations to this approach. 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 used… Read more »

Research
Marketing Mix Modeling, MMM, Marketing Mix Optimisation, targeted advertising