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 »

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, 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 2018…. 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 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 »

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 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… Read more »

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

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 »

Technology HUB 2018: Vorstellung von CheckMedia Solution

Die Technology HUB 2018, eine Veranstaltung für innovative Technologien, fand im Mai 2018 in Mailand statt. Bei diesem Event können Besucher hochqualifizierte Fachleute aus den Bereichen IT und Entwicklung kennenlernen und geschäftliche Kontakte zu ihnen knüpfen. Der Direktor von AdoptoMedia, Alexey Kuznetsov, besuchte die Messe und präsentierte seine neue technologische Lösung – CheckMedia Solution. Alexey, erzählen Sie uns bitte mehr über AdoptoMedia und das Produkt, das Sie auf der Messe vorgestellt haben. Unser Unternehmen entwickelt Lösungen zur effektiven Planung von Werbekampagnen und Optimierung von Medienbudgets. Mit dem einzigartigen Produkt CheckMedia Solution, das auf der Technology HUB 2018 vorgestellt wurde, können Sie das Werbebudget über die Medienkanäle verteilen, Medienpläne erstellen und diese analysieren. Da CheckMedia Solution aus verschiedenen Modulen besteht, von denen die meisten unabhängig voneinander implementiert werden können, ist das Produkt sehr flexibel und dadurch für diverse Kunden geeignet.   Für welche Unternehmen kann CheckMedia Solutions nützlich sein? Dies sind vor allem Großunternehmen mit einem jährlichen Werbebudget von im Durchschnitt über 70 Millionen Rubel und einer russlandweiten Reichweite, die in ihren Werbekampagnen mehr als drei Werbekanäle benutzen.   Was haben Sie im Rahmen der Teilnahme an der Technology HUB gemacht und warum haben Sie sich für den Besuch dieser Veranstaltung… 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 »

AdoptoMedia auf der Russian Retail Week 2018

Die Russian Retail Week 2018 fand im Juni im Moskauer World Trade Center statt. Das Hauptthema des internationalen Forums war der Digitalisierung des Handels gewidmet. Eingeladene Experten, Vertreter aus dem Bereich Retail (Einzelhandel) und Konsumgüterproduzenten diskutierten die Einführung von IT-Innovationen und digitalen Entwicklungen in den Betrieb von Einzelhandelsketten. Das Technologieunternehmen AdoptoMedia nahm an dieser Veranstaltung teil. Die Retail Week ist eine der größten Einzelhandelsveranstaltungen unter Beteiligung von sowohl privaten Unternehmen als auch staatlichen Einrichtungen. Das Forum wurde vom Ministerium für Industrie und Handel der Russischen Föderation und der Russischen Vereinigung der Retailexperten organisiert. In diesem Jahr wohnten mehr als 5.500 Besucher der Veranstaltung bei, darunter Vertreter von Unternehmen wie der X5 Retail Group, Yulmart, Eldorado, Rusagro uvm. AdoptoMedia konnte mit vielen von ihnen geschäftliche Kontakte knüpfen. Der Direktor von AdoptoMedia, Alexey Kuznetsov, hielt auf der Retail Week einen Vortrag über die Optimierung des Werbebudgets im Einzelhandel und stellte die Möglichkeiten seines neuen Produkts CheckMedia Solution vor. Er analysierte ausführlich, wie man die Werbewirkung auf den Umsatz in modernen Unternehmen messen und wie die Verwendung von Big Data für die Budgetierung innerhalb von Werbekanälen erfolgen kann. Big Data ist das Konzept der Sammlung, Speicherung, Verarbeitung und Nutzung großer Datenmengen, die von… Read more »