How did we start? Our offer to a foreign online-casino started from a pitch, where we convinced them to visit us (they were a bit reluctant) in the office to introduce our analytical capabilities and discuss potential partnership opportunities.
Where the first meeting was just scratching the surface, more of a chemistry meeting to get to know each other and what are their needs, their internal competences and whether at all they need our help. It turned out that they were just starting out and could use more help. The second meeting, which followed, was more specific, where we discussed technicalities with their Head Of Analytics.
After winning the client (where our analysis offer was pointed out as one of the deciders), we started to discuss marketing mix modelling which we are working on today.
Marketing Mix Modelling offer was based on these 5 points:
- reevaluating their current media budget in terms of spend per media type (e.g. is there a point to invest money into TV and if so, is my investment in TV too low or too big?). In the example you could see a result of the analysis with the projected optimal budget size, the overview of ROI by media type and TV specific analysis.
- reevaluating the current media budget in terms of products (e.g. is there cannibalism when advertising different products around the same time and if so, how much?). An example of a car brand analysis, by analyzing all the products + the overall sales, we could see the cannibalism effect on different models. This information can help in verifying the budget size and distributing budgets between the products to maximize the sales revenue.
- reevaluating the current media budget in terms of branding vs tactical campaigns (e.g. how much should I invest into branding and have my previous investments been enough?). In the example of the direct effect, it would be accounted to the model specific campaign and the indirect as brand campaign.
- adjusting current marketing activities for the near future, based upon analysed trendlines. Each product could be analysed to the extent of knowing exactly how much each media type works in terms of budget size and incremental sales. In the example below – by optimising the media spend and the budget distribution among the products and going for the overall budget recommendation, the client would be looking at 37% increase in profit.
- having a reliable source of background information to set up future strategies. Information about the ROI of different media types together with the product specific overview of its sales influencers will give the right insight for future sales and marketing strategies.
In addition to the mentioned points, the next steps which we proposed had a crucial role in opting for our project. Step 1: Attribution Modelling, which is about measuring and correct attribution of the channels in the online consumer journey.
Step 2: New Deposit Customer (NDC) research which is an even more detailed analysis of the consumer journey. But more on these in our next newsletter.
If you want to know more about the possibilities of Marketing Mix Modelling, don’t hesitate to contact us by clicking on the button below.
