2. Embracing new measurement tools, methods
and techniques is the way to gain momentum
in today’s competitive landscape.
This publication addresses the change of
scenery in the field of Marketing Measurement
and the observed trends that are now shaping
the fast-moving analytics field.
As reported by eMarketer, the digital share
of total advertising is expected to reach 50%
by the end of 2020.
In today’s world, digitalisation is simply inevitable.
3. The use of Marketing analytics is skyrocketing,
rising thereby the demand
for MTA and MMM providers as well as advanced
software solutions for in-house adoption.
Marketing mix modeling (MMM) and multitouch
attribution (MTA) are the two main and common
approaches used to:
Estimate and disentangle the impact of media
and marketing activities on key business drivers
Assess return on investment (ROI) and
Derive valuable insight for optimal budget
allocation and simulation.
4. These two methods could be used together to get the most out
of a combined top-down and bottom-up approaches and gain
more accurate measurement.
MTA could be used to determine the contributions of digital
channels (e.g. display advertising and paid search tactics) on
online sales and MMM could be used to estimate the impact of
those same activities on offline sales (e.g. stores) in combination
with offline channels while measuring saturation and synergies.
In this case, the marketer will benefit from the high
level/aggregated analysis provided by MMM while getting a
detailed view of digital channels through MTA.
5. Another useful way to combine these approaches and that could potentially circumvent the
privacy issues is to aggregate the attribution data into meaningful segments and apply MMM
analysis to get a measure of the lift/incremental performance at the level of each segment.
Technically, this could be performed by pooling the data related to each segment and
estimate the impacts of marketing efforts at the segment level.
This methodology will provide decision makers with more granular results that better
depict the real response of customers and leads to actionable results at the segment level.