Tag: ad budgeting

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 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 »

Visiting StartUp Day

StartUp Day is a major Baltic business event that unites the business community and the start-ups. Here, experts from various fields and emerging entrepreneurs can discuss business at its different stages. Visiting miscellaneous seminars, talks and workshops included in the event’s primary line-up allows young businesspeople to gain inspiration and experience from the strongest and most established companies. Investments, smart production, cutting-edge technology are all major topics discussed at StartUp Day. AdoptoMedia did not just take part in StartUp Day but ranked in top 10 best projects of the Baltic region. At the event’s final section, the company CEO Alexey Kuznetcov talked to international experts and investors from Finland and Estonia about AdoptoMedia’s flagship product, a software suite for allocating budgets among different advertising channels. It can calculate an optimum marketing budget depending on the client company’s goals or financial capacity, as well as the current economic situation. The talk briefly touched on  AdoptoMedia’s existing achievements, major clients, technology in-use and the upcoming plans. “2017 was all about preparing for expanding internationally, handling all that pertains to intellectual property, localizing the product and forming partnerships with representatives from Italy, Germany and Israel. Entering those markets will allow the company to increase capitalization… Read more »

marketing, ad, StartUp Day, business event, AdoptoMedia,

Case Study: Modeling a Bank’s Media Mix with AdoptoMedia Platform

Most TIER-1 companies employing a full media mix to promote their services need to effectively allocate the media budget among their ad channels. Banks and other financial companies with a wide regional branch network are a typical example of this. Here we will delve into the specifics showcasing how AdoptoMedia can lend a hand in navigating these investment strategies. 1. Customer profile The principal goal of any large bank’s marketing department is to manage marketing activities, and this includes allocating the media budget among products, regions, media channels and ad media within each channel. The bank uses a full media mix to support its marketing activities: TV; radio; OOH advertising; Internet; printed press. Below are the specifics of how the bank’s marketing department operates: ad campaigns take place in over 70 cities, while media buying and placement are managed by all regional offices and the central marketing department; the regional offices handle the local ad suppliers, providing daily support for the ad planning and buying processes. The central marketing department controls and coordinates all regional office activity, as well as conducts planning and buying from national ad suppliers; over 10,000 ad media are purchased annually for all media channels. All ad media purchases… Read more »

AdoptoMedia, CheckMedia Solution, Bank’s Media Mix, Marketing Resource Management, allocating the media budget