Promotions & advertising: accurately
measured but poorly understood
Good Improvable Unproductive
Investments Investment Investment
13% 58% 29%
5.0 8
Millions
4.5
? !
7

4.0
6
3.5
Marketing Investment
5
3.0
Sales ROI
2.5 4
2.0
3
1.5
2
1.0
1
0.5
0.0 0
Combination of Geographies, Brands, and Marketing Activities
Marketing RoI
Marketing Investment
NB. One-year sales ROI can be assumed to be similar to a ROI of three-year NPV net profits

The customer journey: Offline
influences Online. Online
influences Offline

Determining the correct
attribution to sales
Inputs Modelling Outputs
►Validated data set covering ►Marketing mix strategy
►Marketing impact for
►Optimised budget allocation
all investments and key individual investments
business outcomes Base Plan
Optimised Investment
$35
Display
Incremental Net sales
Price $30
Promotion $25
Search
Search
Display $20
Marketing Activity Inputs National
$15
TV
25
20
15
TV GRP Tier 1 10
5 $10
0
ECONOMETRIC MODEL
1.0
0.8
0.6
TV GRP Tier 2 0.4
$5
0.2
0.0
10
5
National Press $0
0
$- $2 $4 $6 $8 $10
1.5
Marketing Investment
1.0
Direct Marketing 0.5
0.0
1.5
1.0
Sales
Search 0.5
0.0
50
40
30
Display 20
10
Current
0
0
0
plan
Sales and Profit
Base Sales
Competitor Spend
0
0
0
- 0 Jan Jan
0
Jan -01 -02
Profit
Competitor Actions Increasing
investment
Sales
drives profit
Time
Marketing Investment

Use channels in concert.
Example: display produces a
faster response than search
100%
Display
Search
Response distribution
95%
! Search has very
low channel loyalty
Paid has
comparatively high
90%
channel loyalty
90%
Week 1 Week 2 Week 3 Week 4
Response time