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Cross Platform : measuring granular
media impact to drive sales growth
CIJU NAIR
VP Analytic Consulting
Millward Brown
@cijutr
SATYA MENON
Chief Scientist
Millward Brown
@satya_menon
Marketers live in the world where…
MARKET DIVERSITY
MEDIA FRAGMENTATION
MULTIPLE BRANDS & VARIANTS
SALES vs. BRAND BUILDING
How do we manage these most efficiently for best business returns ?
Spend
on
Variant A
We need
to build
the Brand
Invest
in TV vs
Digital
Market X is
biggest, needs
most
investment
How does
Variant B
benefit from
A
Modeling Approaches
TOP DOWN APPROACH
• Nested Dynamic Bayesian Models
• Vector Auto Regressive Models
BOTTOM UP APPROACH
• Agent Based Modeling
MEDIA SILOED APPROACH
• Digital Attribution Modeling
Top Down Approach Bottom Up Approach
Historical analysis with granularity
teased out of the top-down model
Consumer level framework of how
consumers make purchase
decisions based on consumer
behavior
Sales
Media
Trade
Activity
Sampling
TV Radio Digital
Input Media Consumption,
U&A data, etc.
Defining Demographics
# of hours each media is
consumed + other
information
# of hours each media is
consumed + other
information
Targeting
based on
Media
/Marketing
Activity
Sales Sales
Sales Prediction Agent based Targeting
Contributiondueto-
Going from Macro optimization …..
…to Micro Optimization
Both Macro and Micro perspectives are critical for
investment allocation decisions!
Trade Activity
8.8%
Owned
Media
2.4%
Samplin
g
3.7%
Events &
Sponsorship
11.9%
Competitor
Trade**
-4.5%
Collegiate
Marketing
1.7%
Paid Media
8.0%
Web
TV
1.0%
Radio
1.8%
Online
Display
1.4%
Online
Social
0.4%
OO
H
0.1
%
Cinem
a
1.2%
TPR
-0.2%
Distribution
-4.3%
On-
Premise
4.1%
Faceboo
k
1.4%
Organic
Search
2.6%
Twitter
0.3%
Total Folder
4.4%
TPR
1.8%
Total
Display
2.6%
Culture
2.3%
Sports
2.1%
Brand
Buildin
g
1.4%
Opinio
n
Leader
s 1.6%
Internatio
nal Series
2.1%
YouTu
be
1.5%
RB.COM
0.9%
WORB
0.5%
MOTO
0.7% Athlet
es
0.9%
F1
0.7%
Flanker
0.1%
Launches
.4%
Monster /
Burn
-1.1%
Red Bull
Launche
s
0.7%
Incremental
Sales
36%
Base Sales
64%
Earned
Media
4.3%
Carto
on
1.5%
Most analysis tells us the ‘Total contributions’
from a particular Marketing element
But ‘Line
Managers’
need more
granularity
across media
types….
WHAT
PROGRAM? WHAT
CREATIVE?
WHAT
COPY
LENGTH?
WHAT
NETWORK?
WHAT
DAY
PART?
WHAT
FORMAT?
BUDGET FOR
TV ADVERTISING
$10MILLION
DYNAMIC BAYESIAN
MODELS
CAPTURES IMPACT WITH A GOOD
DEGREE OF SENSITIVITY
HYPERCUBE
CASCADES THE CONTRIBUTIONS TO
MORE GRANULAR MARKETING
ACTIVITY
The Idea….
Sales
impact
measured
at weekly
level
Uses activity levels to
inform on performance
at a granular level
Medium
Low High
PROMOTION
DISPLAY
3rd PARTY
SAMPLING
1-1
SAMPLING
COPY
LENGTH
DAY PART
Contribution due
to TV Advertising
20%
Contribution due to
Sampling
10%
Hypercube approach allows you to slice the data
within each element of marketing mix SAMPLING
TRADE ACTIVITY
TV ADVERTISING
Granular inputs provide more actionable insights
COPY
LENGTH
PROGRAM
DAY PART
CREATIVE
STYLE
NETWORK
FORMAT
Decisions on copy length
@ what day part
format + program +
network
creative style +
program
copy length + format
+ day part +
network
15s 30s 60s
Week 1
Week 2
Week 3
.
.
.
.Week N
COPY LENGTH
MORNING NOON EVENING
Week 1
Week 2
Week 3
.
.
.
.Week N
DAY PART
VOICE
DANCING WITH
STARS
AMERICAN
IDOL
Week 1
Week 2
Week 3
.
.
.
.Week N
GAME OF
THRONES
SATURDAY
NIGHT LIVE
PROGRAM
THEMATIC FUNCTIONAL PROMOTIONAL
Week 1
Week 2
Week 3
.
.
.
.
Week N
CREATIVE
ABC CBS NBC
Week 1
Week 2
Week 3
.
.
.
.Week N
NATG
NETWORK
COMPARATIVE TESTIMONIAL CELEBRITY
Week 1
Week 2
Week 3
.
.
.
.Week N
FORMAT
BUDGET FOR TV
ADVERTISING
$10MILLION
Why does this work?
• Holistic approach that allows to compare ROIs of all marketing
activity at granular level for better decisions
• More tractability and managerial relevance than other approaches
that requires many models, constraints and reconciliation
• Dynamic weekly coefficients for all marketing drivers
• Annual activity summaries could be flawed, granular
imputations more accurate
Key Benefits
Helps get more actionable insights
Display Promotion Feature FSI Circular e-circular
Events
Sampling
Trade Activity
TV
Digital
Enables MMM to now allocate from Macro
to Micro level
Sports Culture Movies Brand Building Sponsorship
Channel
1
Channel
2Campaign 1 60s 30sCampaign 2
Current Mix
Optimized Mix
Google BingSearch Display TestMobile
Offseason Season3rd party National Local1-1

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Measuring Granular Media Impact V3

  • 1.
  • 2. Cross Platform : measuring granular media impact to drive sales growth CIJU NAIR VP Analytic Consulting Millward Brown @cijutr SATYA MENON Chief Scientist Millward Brown @satya_menon
  • 3. Marketers live in the world where… MARKET DIVERSITY MEDIA FRAGMENTATION MULTIPLE BRANDS & VARIANTS SALES vs. BRAND BUILDING
  • 4. How do we manage these most efficiently for best business returns ? Spend on Variant A We need to build the Brand Invest in TV vs Digital Market X is biggest, needs most investment How does Variant B benefit from A
  • 5. Modeling Approaches TOP DOWN APPROACH • Nested Dynamic Bayesian Models • Vector Auto Regressive Models BOTTOM UP APPROACH • Agent Based Modeling MEDIA SILOED APPROACH • Digital Attribution Modeling
  • 6. Top Down Approach Bottom Up Approach Historical analysis with granularity teased out of the top-down model Consumer level framework of how consumers make purchase decisions based on consumer behavior Sales Media Trade Activity Sampling TV Radio Digital Input Media Consumption, U&A data, etc. Defining Demographics # of hours each media is consumed + other information # of hours each media is consumed + other information Targeting based on Media /Marketing Activity Sales Sales Sales Prediction Agent based Targeting Contributiondueto-
  • 7. Going from Macro optimization …..
  • 8. …to Micro Optimization Both Macro and Micro perspectives are critical for investment allocation decisions!
  • 9. Trade Activity 8.8% Owned Media 2.4% Samplin g 3.7% Events & Sponsorship 11.9% Competitor Trade** -4.5% Collegiate Marketing 1.7% Paid Media 8.0% Web TV 1.0% Radio 1.8% Online Display 1.4% Online Social 0.4% OO H 0.1 % Cinem a 1.2% TPR -0.2% Distribution -4.3% On- Premise 4.1% Faceboo k 1.4% Organic Search 2.6% Twitter 0.3% Total Folder 4.4% TPR 1.8% Total Display 2.6% Culture 2.3% Sports 2.1% Brand Buildin g 1.4% Opinio n Leader s 1.6% Internatio nal Series 2.1% YouTu be 1.5% RB.COM 0.9% WORB 0.5% MOTO 0.7% Athlet es 0.9% F1 0.7% Flanker 0.1% Launches .4% Monster / Burn -1.1% Red Bull Launche s 0.7% Incremental Sales 36% Base Sales 64% Earned Media 4.3% Carto on 1.5% Most analysis tells us the ‘Total contributions’ from a particular Marketing element
  • 10. But ‘Line Managers’ need more granularity across media types…. WHAT PROGRAM? WHAT CREATIVE? WHAT COPY LENGTH? WHAT NETWORK? WHAT DAY PART? WHAT FORMAT? BUDGET FOR TV ADVERTISING $10MILLION
  • 11. DYNAMIC BAYESIAN MODELS CAPTURES IMPACT WITH A GOOD DEGREE OF SENSITIVITY HYPERCUBE CASCADES THE CONTRIBUTIONS TO MORE GRANULAR MARKETING ACTIVITY The Idea…. Sales impact measured at weekly level Uses activity levels to inform on performance at a granular level Medium Low High
  • 12. PROMOTION DISPLAY 3rd PARTY SAMPLING 1-1 SAMPLING COPY LENGTH DAY PART Contribution due to TV Advertising 20% Contribution due to Sampling 10% Hypercube approach allows you to slice the data within each element of marketing mix SAMPLING TRADE ACTIVITY TV ADVERTISING
  • 13. Granular inputs provide more actionable insights COPY LENGTH PROGRAM DAY PART CREATIVE STYLE NETWORK FORMAT Decisions on copy length @ what day part format + program + network creative style + program copy length + format + day part + network
  • 14. 15s 30s 60s Week 1 Week 2 Week 3 . . . .Week N COPY LENGTH
  • 15. MORNING NOON EVENING Week 1 Week 2 Week 3 . . . .Week N DAY PART
  • 16. VOICE DANCING WITH STARS AMERICAN IDOL Week 1 Week 2 Week 3 . . . .Week N GAME OF THRONES SATURDAY NIGHT LIVE PROGRAM
  • 17. THEMATIC FUNCTIONAL PROMOTIONAL Week 1 Week 2 Week 3 . . . . Week N CREATIVE
  • 18. ABC CBS NBC Week 1 Week 2 Week 3 . . . .Week N NATG NETWORK
  • 19. COMPARATIVE TESTIMONIAL CELEBRITY Week 1 Week 2 Week 3 . . . .Week N FORMAT
  • 21. Why does this work? • Holistic approach that allows to compare ROIs of all marketing activity at granular level for better decisions • More tractability and managerial relevance than other approaches that requires many models, constraints and reconciliation • Dynamic weekly coefficients for all marketing drivers • Annual activity summaries could be flawed, granular imputations more accurate Key Benefits
  • 22. Helps get more actionable insights
  • 23. Display Promotion Feature FSI Circular e-circular Events Sampling Trade Activity TV Digital Enables MMM to now allocate from Macro to Micro level Sports Culture Movies Brand Building Sponsorship Channel 1 Channel 2Campaign 1 60s 30sCampaign 2 Current Mix Optimized Mix Google BingSearch Display TestMobile Offseason Season3rd party National Local1-1