Tag: budget optimization

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

Visiting Content Israel

Content Israel is a conference aimed at researching content marketing technologies. Among its participants are international and local agencies, start-ups and major brands. The conference discusses various content marketing strategies, hosts workshops based around case study results and provides a venue for the best speakers from international companies such as SodaStream, The Guardian, Cisco, 3m and Linkedin, among others. Content Israel itself encourages participants from different countries, such as the US, Israel, the UK and others, to share in the experience and gain knowledge needed to expand their businesses. AdoptoMedia was also represented at Content Israel in the fall of 2017. AdoptoMedia is an international start-up company with branches in Israel and Estonia. The company’s primary area of expertise is advertising budget optimization based on various technologies that include attribution and econometric modeling. At the Content Israel round table, AdoptoMedia executives discussed with other participants the matters of content influencing overall advertising efficiency, and in particular, the impact of creative materials. The abovementioned econometric modeling approach employed by AdoptoMedia allows for baseline use of creatives as an efficiency-impacting factor. The influence of creatives is evaluated using specific metrics, focus groups and neuro kit-based research being the most popular. Focus groups are best applied when a creative approach is… Read more »

AdoptoMedia, Content Israel, content marketing, marketing, advertising budget optimization, advertising efficiency