Tag: MMM

Why Adidas Changes its Marketing Measurement Approach?

Research shows that using marketing technology to measure effectiveness results in significant performance improvement. But what if the approach you use is flawed and measurement results are only preventing your business from making the most of advertising. Such was the case with Adidas that had been over-investing in digital channels due to MTA analytics. Turns out even multinational corporations like Adidas aren’t immune to mistakes. But who can blame them? I mean, weren’t we all charmed by promising advantages of multi-touch attribution. It’s a relatively new tool that functions at a highly granular level and is perfectly suitable for evaluating digital campaign performance. MTA can analyze individual customer journey and find what marketing activities lead to conversion. This high level of granularity makes you think that the tool is more accurate than it really is, but this major strength became its main problem when legal restrictions concerning data privacy came into force. GDPR severely limits the potential of attribution. Other limitations of MTA are: MTA can still be helpful with targeted application in the areas where it is most useful, for example, it allows for optimization of formats and creatives within a channel. MTA does result in temporary ROMI increase,… Read more »

Adidas, strategic marketing measurement, MMM, marketing effectiveness, AdoptoMedia

How to Use MMM and MTA Correctly?

There is a variety of tools for measuring marketing effectiveness and even more solution providers on the market. Using the right ones is crucial for your business success. In this article you will find out how to choose the most suitable vendor and correctly apply marketing mix modelling and attribution to achieve outstanding results. 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. Now there are no doubts about whether to evaluate marketing performance because decisions based on statistics and analytics are more effective than those based on experience and gut feeling. According to Gartner’s 2018 survey, where 503 respondents from large companies were interviewed, marketers who use strategic measurement tools report significant performance improvement. It happens because high-quality measurement allows improving planning capabilities and increase enterprise value. The debates now are going on about which tool is the most suitable to evaluate marketing effectiveness. Keep… Read more »

Marketing Mix Modelling, Attribution, Multi Touch Attribution, Unified Measurement Approach, advantages and disadvantages of Marketing Mix Modelling and Attribution, effective marketing measurement, marketing measurement challenges, AdoptoMedia

Cross-Media Measurement Tools

One of the topical problems in 2019 is digital advertising and cross-media measurement. Since there is a growing number of complex techniques and methodologies, but no unified approach, most companies lack expertise to deal with it. Here we cover various measurement tools and their cross-platform application. 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. Created in 1997, Interactive Advertising Bureau UK (IAB UK) is a trade association, promoting sustainable development, the best practices and standards for advertisers, agencies, and media owners. Their goal is to address challenges the industry is facing and offer some solutions. Our article is an overview of the guide for marketers on best practices today that IAB prepared with MTM. Here you will find some useful advice on what models and techniques to use for digital advertising performance measurement within the environment of various media, both large-scale and more granular analyses…. Read more »

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

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