Tag: Marketing Mix Models
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 »
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 »
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 »
