Provide continuous, actionable insights to the client regarding their marketing spend performance across different media channels. Optimize the spend for future time periods to achieve required ROIs.
Impact of the Engagement
An Incremental revenue of ~3.25% was achieved through optimized market budget allocation. Key media channels & sub-channels with maximum ROI were identified.
ClientA leading US Consumer Electronics Company known for its products which are activity trackers, wireless-enabled wearable technology devices that measure personal metrics.
TriggerWith the proliferation of new media like Internet, viral marketing, product placement, cell phones, etc. television viewership has decreased. This situation demanded for marketing departments to maximize the return on their marketing investments. A data assisted approach for measuring the returns on the media spend did not exist with the client. They were unable to evaluate if expected ROIs from media channels were being realized. Hence to enable the client to make data assisted, benchmarked and informed decisions a Media mix model was required.
Challenge and ApproachThe client wanted a holistic, commercially-focused approach for evaluating and design their future marketing mix. They wanted to optimize the combination of marketing and advertising investments to generate the greatest sales growth and/or maximize profits. Affine collated & stitched together various marketing & sales data of client. A thorough analysis of the client’s existing marketing strategy was done through this data. Key drivers of Sales & channels with better impact were identified. Key deliverables that Affine proposed are as below.
- A Powerful simulation and optimization web tool for marketing managers, with scenario planning capabilities.
- Statistical models that measures the impact of all business drivers including traditional media, digital media, operations factors, consumer attitudes and external factors on offline sales and online sales.
- The effectiveness of the marketing mix elements in terms of their contribution to sales and profits was calculated, and bench-marked against costs to compute ROI.
- Marketing Strategy calendar management through Time-series forecasting was performed for future.
- One stop solution for Marketing Mix Budget Allocation was created for the client through the web tool.
- An Incremental revenue of ~3.25% was achieved with lesser budget in sales & marketing initiatives.
- Response of various media channels across the years was explored. The spend saturation of the media channels were identified.
- Optimized budget allocation resulted in an improved reach per spend across different Media Channels.