Evolution of MMO. Part 2: Breakthrough.

Over the last 40 years there have been some significant changes in Marketing Mix Optimization: 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. This agility is crucial in the digital age, where advertising campaigns are short-lived. Without the necessary 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 partnership… Read more »

Marketing Mix Modelind, MMM, Media Mix Optimisation, targeted advertising

Evolution of MMO. Part 1: MMO through Years

Accenture is one of the leading global consulting firms, providing a wide range of services and solutions across over 40 industries and various business functions in more than 120 countries. The company combines business and technology to improve its clients’ performance. In one of their articles they cover the development of Marketing Mix Modeling (MMM) 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. The following three stages of MMO evoludion will be covered: Similar Linear Regression Mixed Model State Space Model The article is presented as a case study of a toy manufacturer, ToyCo, which has a $100 million media budget. The manufacturer wants to understand what portion of its sales can be attributed to advertising and which channels have the most impact on… Read more »

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

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 overcoming some obstacles, but the 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; it helps drive progress and generate the best ideas. However, today marketing agencies have enough external rivals to contend with, such as platforms like Facebook and Adobe, or in-house agencies established by some companies. For instance, Procter & Gambe created its own marketing department and managed to save $750 million on advertising and production costs in 2018. Bringing some… Read more »

effective agency model, front-office, middle-office, back-office, ad agency, agency integration

B2B Advertising: Effective Audience Targeting

What is the best way to promote a new B2B product? Sending out flyers and placing ads in elevators and on doors of business centers would be a common strategy in such cases. However, the promotion of premium services doesn’t have to be geographically limited to workplaces of potential clients. One of Vistarmedia Company’s clients that provides business solutions for small and large enterprises wanted to increase interest in their services. Advertising experts identified the target audience, concentrated in two areas, and divided it into corporations and small firms. Further, the natural behavior of the target audience was analyzed to identify their most frequented places outside of work. That’s where OOH advertising like screens and banners was placed. This decision helped to achieve some tangible results. During the campaign, target audience was successfully reached, with 51% of the participants holding executive positions in different firms. Judging by the figure, we can say that the targeting process was performed effectively.  With a right creative message for key audience, marketers increased customers’ interest in the brand and the product by 75% and 39% respectively. Cafes, night clubs, cinemas and other public places are very popular with advertisers. And it shouldn’t come as… Read more »

Pioneers Conference 2018

Pioneers 2018 is a large-scale conference that took place in May 2018 in Vienna and gathered investors and representatives of modern start-ups. AdoptoMedia Company was among 550 most notable startups from around the world invited to participate in the conference. What distinguishes Pioneers 2018 from other similar projects is the fact that it selects startups developing “technologies of the future.” At the same time both newly-founded startups and those in further stages of development are welcome to participate. In 2018, Pioneers Conference was held in a unique historical place — the 500-year old Winter Home of the Habsburg Dynasty. “This is the place where the past meets the future” – said Oliver Csendes, the CEO of Pioneers. The venue chosen for the conference imposed significant restrictions on the number of participants, which contributed to the high quality of the event. AdoptoMedia CEO, Aleksey Kuznetsov, represented the company at the conference in Vienna. The company is developing systems aimed at optimization of advertising budgets. The CEO’s speech was dedicated to AdoptoMedia’s main product, namely its features and benefits. The tool by AdoptoMedia allows to easily distribute budgets between different ad channels, calculate customer’s optimal media spend and estimate ROMI (return on… Read more »

Pioneers Conference 2018, marketing, event, technological product, CheckMedia Solution, AdoptoMedia, advertising, large-scale conference

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 playersб and absolute experts to provide a thorough analysis of relevant marketing trends. Top speakers included the representatives of giants like Adobe, Google, Facebook, McKinsey & Company, etc. A global management consulting firm, McKinsey & Company, presented its innovative ideas concerning the Marketing Operating Model. They propose an omnichannel, person-based optimization approach that has already proven effective and is expected to save Optus, the second-largest telecommunications company in Australia, $15 million in marketing costs.   To fully understand how this new-generation solution is going to changes the industry, begin by examining the current landscape. One of the biggest challenges marketers face today is measuring Marketing Return on Investment (MROI). In 60% of cases, they are unable to estimate the long-term or short-term impact of their marketing efforts. While various approaches are available to address the MROI question, none are flawless. The main drawbacks of existing methods: And the real problem is lack of data. McKinsey advises the following 5 methods to optimize marketing and increase your revenue by 2-5%: What exactly this transition means?… Read more »

MROI, ROMI, media budget, media spend, Media Mix Optimisation, advertising channels

Media Measurement Tools

We are trying to keep you updated on all marketing measurement trends, that’s why we prepared an article on the use of measurement tools after the phase-out of cookies and IDFA. Get ready to privacy changes and apply solutions that won’t be affected by the new conditions. See how MMM, MTA, brand studies and other approaches are going to function without third-party cookies. 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 the budget between different media channels in the most effective way and make sure that all expenditures yield a positive return. What we need are metrics that accurately reflect ROI at a sufficiently granular level. Unfortunately media measurement is currently not keeping pace with business needs in this rapidly evolving landscape, which is shifting from traditional TV to a multi-platform video approach. At CIMM’s request, the current state of marketing and media ROI analysis was examined. The Coalition for Innovative Media Measurement (CIMM) is a group of content providers, buyers, and sellers promoting innovation for in audience measurement across Television, Internet, and Mobile platforms in the USA. Among CIMM members are CBS, Discovery,… Read more »

MMM, Attribution, media budget optimisation, effective media channels, ROI, ROMI, Media buying

Three Pillars of Procter&Gamble Ad Revolution

The debate about transparency issues in the advertising industry has been gaining momentum recently, largely due to Jon Mandel’s speech at the Association of National Advertisers’ (ANA) annual media conference in 2015. The following year, independent research conducted by K2 Intelligence LLC (“K2”) revealed numerous non-transparent business practices, such as rebates and problematic principal transactions, occurring regularly throughout the media spectrum. Evidence suggested that some advertising agencies had taken advantage of their position, failing to act in the best interests of advertisers. The situation took an unprecedented turn in 2018 when the FBI intervened and requested cooperation from the ANA and its members. Although no conclusive evidence has emerged yet, and no accusations or charges have been made, the FBI believes that potential victims of financial fraud may exist and seeks their assistance in this extensive investigation. This inquiry could uncover offenses far more serious than financial fraud, including conspiracy and even racketeering. Such a scandal could not go unnoticed and naturally led to revolutionary changes in the advertising industry, prompting companies to take action. One of the world’s biggest advertisers, Procter & Gamble, launched a new marketing strategy aimed at reducing spending and enhancing the effectiveness of advertising. The… Read more »

Technology HUB 2018

In May 2018, Milan hosted an event dedicated to innovative technologies — Technology HUB 2018. This innovative products trade show creates a favorable environment for establishing commercial relations with top IT and development experts. AdoptoMedia CEO, Aleksey Kuznetsov, took part in Technology HUB 2018 where he presented the company’s technological product. Aleksey, could you please tell us more about your company and the product you presented on the trade show? Our company develops solutions to effectively plan advertising campaigns and optimize media budgets. The company’s unique product, which was presented at the Technology HUB 2018, enables effective allocation of your ad budget across various media channels and helps to create and analyze media plans. Due to the fact that the product consists of different independent modules most of which can be deployed separately, it is flexible and suitable for many customers. Which companies might benefit from AdoptoMedia’s product? Large companies across Western and Eastern Europe, Latin America and the Middle East with annual media budget of more than $1 million, using more than 3 various advertising channels in their media campaigns. How exactly were you involved in the event? Why did you choose this particular fair? Technology HUB 2018 was… Read more »

#RebateGate. The Advertiser-Agency Disconnect. Conflict of Interest. Part 3: Transparency and AdoptoMedia Platform

As we have previously covered here and here, the 2016 “RebateGate” proved to be a wake-up call for the advertising industry enshrouded in non-transparency, and uncovered the disconnect between the advertisers and their agencies in regards to the very nature of their relationship. The Association of National Advertisers, which commissioned the renowned K2 Intelligence Report, was quick to lend a helping hand to advertisers who found themselves at a loss as to how to cut their losses and recuperate. Published in July 2016 and updated to version 2.0 in July 2018, ANA’s template Master Media Buying Services agreement is part of the overall set of ANA’s Guidelines for best practice. It is meant to serve as a blueprint for transparent regulation of the Advertiser-Agency relationship, ultimately aimed at rebuilding trust and confidence between the two parties. The advertiser-agency media management practices require full disclosure as their cornerstone principle. Seeing how many agencies have blurred the lines, the contract between the parties has to precisely define the nature of their relationship. Whether it be that the agency acts as the client’s agent or the principal in its own right, there should always be a contractually prescribed ability for the advertiser to… Read more »

Adoptomedia, Checkmedia solution, ad optimisation, ad automation, marketing budget optimisation, digital transformation, visibility, transparency, compliance