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About Universal Music

       ♫ Global music market leader:
         ♯ 6 of the global 10 best selling tracks in 2009
    ...
About Media Buying at Universal Music

    ♫ TV advertising is a key sales driver:
      ♯ over 1/3 total marketing budget...
Media Buying is a Source of Worry for Clients



Of the 50 largest advertisers in the world:
 91 percent consider the med...
Ad Nav our Robotic Media Advisor


                              Agency / Client
  Brief           Plan/Cost          Buy ...
Comparison of Approaches

                        Media Agency            + Audit/Model            + AdNav
      Timing   ...
Illustrative Results


                                 Day      Time    Station   Programme                              ...
Spend
                                              Sales




                                    Advertising spend (£/day...
Launch




                                                     Spend
                                             Sales
 ...
Spend
                         Sales




              Advertising spend (£/day)
                                         ...
Launch




                                                  Spend
                                          Sales
       ...
Spend
                         Sales




              Advertising spend (£/day)
                                         ...
Launch




                                                  Spend
                                          Sales
       ...
Spend
                         Sales




              Advertising spend (£/day)
                                         ...
Launch




                                                  Spend
                                          Sales
       ...
Before


                     Contribution   Contribution            Net
Business Unit             gained            lost ...
After


                                  Contribution        Contribution                  Net
 Business Unit            ...
Is this approach for you?




18
AdNav – Good client “fit”


 Heavy media user

 Sales responses are at least as important
  as brand building

 Sales d...
Feasibility Study



                    Data availability



                    Data accuracy



                     Da...
Feasibility Study



                       Find Correlations



                    Check Inter-Correlations



         ...
Feasibility Score Card


 Issue                                 Score
 Data Availability
 Data Accuracy
 Data Variability
...
About VBMF


          VBMF
          £   Consultancy established in 1989
          £   Combining analytical and systems e...
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Case study - improving marketing ROI at Universal Music through Artificial Intelligence

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Case study showing how Universal Music has automated its weekly media analysis using Artificial Intelligence and is getting better results and lowering costs

Published in: Business, Technology
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Case study - improving marketing ROI at Universal Music through Artificial Intelligence

  1. 1. 1
  2. 2. About Universal Music ♫ Global music market leader: ♯ 6 of the global 10 best selling tracks in 2009 ♯ market share 27% in 2008 ♫ Market leader in four of the five largest music markets ♫ UK market leader in 2009: ♯ 2 of the 5 best selling albums in the UK in 2009 ♯ 33% market share for all albums ♫ Labels Polydor, Mercury, Island, Motown, Decca etc. ♫ Artists include U2, Lady GaGa, Elton John, Metallica and Amy Winehouse 2
  3. 3. About Media Buying at Universal Music ♫ TV advertising is a key sales driver: ♯ over 1/3 total marketing budget on TV ♫ Marketing mix differs widely from album to album ♫ Each label responsible for managing its own budgets ♫ TV advertising budget is set on a project by project basis ♫ Budgets and spot allocation modified on a weekly basis ♫ Weekly Albums Chart gives immediate gauge of response ♫ How to separate TV response from other drivers? 3
  4. 4. Media Buying is a Source of Worry for Clients Of the 50 largest advertisers in the world:  91 percent consider the media buying process insufficiently transparent  85 percent are convinced their media agency has deals outside the client agreement  74 percent said these deals cause bias in the choice of media and recommendations Source: CMO Council 2009
  5. 5. Ad Nav our Robotic Media Advisor Agency / Client Brief Plan/Cost Buy Execute Billing What-If Learnings Results Reconciliation AdNav Our “Robotic” Media Advisor uses Artificial Intelligence to produce over 1000 models annually
  6. 6. Comparison of Approaches Media Agency + Audit/Model + AdNav Timing 9-6 x 5 x 52 1x1x1 24 x 7 x 52 Media effectiveness Gut feel High level patterns Detail of every spot Media invoice Trust As and when audited 24 x 7 x 52 reconciliation Media plan As and when audited Trust 24 x 7 x 52 assessment & contract Learning and As and when audited Limited 24 x 7 x 52 improvement & delayed Costs (function of £100k build As per contract £50k - £100k p/a “spec”) £50k p/a Benefits Function of deal book [say] 2-10% 10-30%
  7. 7. Illustrative Results Day Time Station Programme Adspend IncSales Cost of Sale SUN 21:00 C4TV BIG BROTHER 10 HOUSE ACTION 5,000 500 10.00 MON 21:00 E4 DESPERATE HOUSEWIVES YR 2 500 100 5.00 MON 21:00 E4 DESPERATE HOUSEWIVES YR 3 600 120 5.00 TUE 21:00 LIVING GHOST WHISPERER S04 80 40 2.00 TUE 21:00 MORE4 WEST WING YR 7 US O5/06 700 350 2.00 WED 21:00 E4 YOUNG SEXY AND...RICH 100 40 2.50 WED 21:00 E4 DESPERATE HOUSEWIVES 400 160 2.50 WED 21:00 E4 ONE TREE HILL YR 6 1,000 400 2.50 THU 21:00 C4TV BIG BROTHER'S LITTLE BROTHER 4,000 500 8.00 FRI 21:00 C4TV UGLY BETTY YR 3 - CRIMES OF FASHION 2,500 250 10.00 FRI 21:00 LIVING FOUR WEDDINGS 200 20 10.00 SAT 21:00 C4TV BIG BROTHER 10 HOUSE ACTION 10,000 500 20.00 9,000 35,000 10 35,000 8,000 9 30,000 30,000 8 7,000 Sales by contribution (units) 25,000 25,000 Advertising spend (£/day) 7 6,000 Advertising spend (£) Cost Per Unit (£) Ads 6 20,000 20,000 CPU 5,000 Launch CPU Base 5 CPU 4,000 15,000 Sales 15,000 Spend Spend 4 3,000 3 10,000 10,000 2,000 2 5,000 5,000 1,000 1 0 0 0 0 25 Nov 26 Nov 27 Nov 28 Nov 29 Nov 30 Nov 1 Dec 2 Dec 3 Dec 4 Dec 5 Dec 6 Dec 7 Dec 8 Dec 9 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 Dec 26 Dec 27 Dec 28 Dec 29 Dec 30 Dec 31 Dec 1 Jan 2 Jan 3 Jan 4 Jan 5 Jan 6 Jan 7 Jan 8 Jan 9 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 25 Nov 26 Nov 27 Nov 28 Nov 29 Nov 30 Nov 1 Dec 2 Dec 3 Dec 4 Dec 5 Dec 6 Dec 7 Dec 8 Dec 9 Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 Dec 26 Dec 27 Dec 28 Dec 29 Dec 30 Dec 31 Dec 1 Jan 2 Jan 3 Jan 4 Jan 5 Jan 6 Jan 7 Jan 8 Jan 9 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan Date Date
  8. 8. Spend Sales Advertising spend (£/day) S 18-Apr F 17-Apr T 16-Apr W 15-Apr T 14-Apr M 13-Apr S 12-Apr S 11-Apr F 10-Apr What explains this T 9-Apr W 8-Apr T 7-Apr M 6-Apr S 5-Apr S 4-Apr peak? F 3-Apr Date T 2-Apr W 1-Apr T 31-Mar M 30-Mar S 29-Mar S 28-Mar F 27-Mar T 26-Mar W 25-Mar T 24-Mar M 23-Mar S 22-Mar S 21-Mar F 20-Mar T 19-Mar Campaign A W 18-Mar T 17-Mar Sales by contribution (units)
  9. 9. Launch Spend Sales Base Ads Advertising spend (£/day) S 18-Apr F 17-Apr T 16-Apr W 15-Apr T 14-Apr M 13-Apr S 12-Apr S 11-Apr F 10-Apr T 9-Apr W 8-Apr T 7-Apr M 6-Apr S 5-Apr Carryover S 4-Apr F 3-Apr Date T 2-Apr W 1-Apr T 31-Mar M 30-Mar S 29-Mar S 28-Mar F 27-Mar T 26-Mar W 25-Mar T 24-Mar M 23-Mar S 22-Mar S 21-Mar F 20-Mar T 19-Mar Campaign A W 18-Mar T 17-Mar Sales by contribution (units)
  10. 10. Spend Sales Advertising spend (£/day) S 4-Apr F 3-Apr T 2-Apr W 1-Apr T 31-Mar M 30-Mar S 29-Mar S 28-Mar F 27-Mar T 26-Mar W 25-Mar T 24-Mar M 23-Mar S 22-Mar S 21-Mar F 20-Mar T 19-Mar W 18-Mar T 17-Mar M 16-Mar S 15-Mar S 14-Mar F 13-Mar T 12-Mar W 11-Mar T 10-Mar Date M 9-Mar S 8-Mar S 7-Mar F 6-Mar T 5-Mar W 4-Mar T 3-Mar M 2-Mar S 1-Mar S 28-Feb F 27-Feb T 26-Feb W 25-Feb T 24-Feb M 23-Feb S 22-Feb S 21-Feb F 20-Feb T 19-Feb W 18-Feb T 17-Feb M 16-Feb S 15-Feb Campaign B S 14-Feb F 13-Feb T 12-Feb W 11-Feb T 10-Feb Sales by contribution (units)
  11. 11. Launch Spend Sales Base Ads Advertising spend (£/day) S 4-Apr F 3-Apr T 2-Apr W 1-Apr T 31-Mar M 30-Mar S 29-Mar S 28-Mar F 27-Mar T 26-Mar W 25-Mar T 24-Mar M 23-Mar S 22-Mar S 21-Mar F 20-Mar T 19-Mar W 18-Mar T 17-Mar M 16-Mar S 15-Mar S 14-Mar F 13-Mar T 12-Mar W 11-Mar T 10-Mar Date M 9-Mar S 8-Mar S 7-Mar F 6-Mar T 5-Mar W 4-Mar T 3-Mar M 2-Mar S 1-Mar S 28-Feb F 27-Feb T 26-Feb W 25-Feb T 24-Feb M 23-Feb S 22-Feb S 21-Feb F 20-Feb T 19-Feb W 18-Feb T 17-Feb M 16-Feb S 15-Feb Campaign B S 14-Feb F 13-Feb T 12-Feb W 11-Feb T 10-Feb Sales by contribution (units)
  12. 12. Spend Sales Advertising spend (£/day) S 4-Apr F 3-Apr T 2-Apr W 1-Apr T 31-Mar M 30-Mar S 29-Mar S 28-Mar F 27-Mar T 26-Mar W 25-Mar T 24-Mar M 23-Mar S 22-Mar S 21-Mar F 20-Mar T 19-Mar W 18-Mar T 17-Mar M 16-Mar S 15-Mar S 14-Mar F 13-Mar T 12-Mar W 11-Mar T 10-Mar Date M 9-Mar S 8-Mar S 7-Mar F 6-Mar T 5-Mar W 4-Mar T 3-Mar M 2-Mar S 1-Mar S 28-Feb F 27-Feb T 26-Feb W 25-Feb T 24-Feb M 23-Feb S 22-Feb S 21-Feb F 20-Feb T 19-Feb W 18-Feb T 17-Feb M 16-Feb S 15-Feb Campaign C S 14-Feb F 13-Feb T 12-Feb W 11-Feb T 10-Feb Sales by contribution (units)
  13. 13. Launch Spend Sales Base Ads Advertising spend (£/day) S 4-Apr F 3-Apr T 2-Apr W 1-Apr T 31-Mar M 30-Mar S 29-Mar S 28-Mar F 27-Mar T 26-Mar W 25-Mar T 24-Mar M 23-Mar S 22-Mar S 21-Mar F 20-Mar T 19-Mar W 18-Mar T 17-Mar M 16-Mar S 15-Mar S 14-Mar F 13-Mar T 12-Mar W 11-Mar T 10-Mar Date M 9-Mar S 8-Mar S 7-Mar F 6-Mar T 5-Mar W 4-Mar T 3-Mar M 2-Mar S 1-Mar S 28-Feb F 27-Feb T 26-Feb W 25-Feb T 24-Feb M 23-Feb S 22-Feb S 21-Feb F 20-Feb T 19-Feb W 18-Feb T 17-Feb M 16-Feb S 15-Feb Campaign C S 14-Feb F 13-Feb T 12-Feb W 11-Feb T 10-Feb Sales by contribution (units)
  14. 14. Spend Sales Advertising spend (£/day) S 18-Apr F 17-Apr T 16-Apr W 15-Apr T 14-Apr M 13-Apr S 12-Apr S 11-Apr F 10-Apr T 9-Apr W 8-Apr T 7-Apr M 6-Apr S 5-Apr S 4-Apr F 3-Apr T 2-Apr W 1-Apr T 31-Mar M 30-Mar S 29-Mar S 28-Mar F 27-Mar T 26-Mar W 25-Mar T 24-Mar Date M 23-Mar S 22-Mar S 21-Mar F 20-Mar T 19-Mar W 18-Mar T 17-Mar M 16-Mar S 15-Mar S 14-Mar F 13-Mar T 12-Mar W 11-Mar T 10-Mar M 9-Mar S 8-Mar S 7-Mar F 6-Mar T 5-Mar W 4-Mar T 3-Mar M 2-Mar S 1-Mar Campaign D S 28-Feb F 27-Feb T 26-Feb W 25-Feb T 24-Feb Sales by contribution (units)
  15. 15. Launch Spend Sales Base Ads Advertising spend (£/day) S 18-Apr F 17-Apr T 16-Apr W 15-Apr T 14-Apr M 13-Apr S 12-Apr S 11-Apr F 10-Apr T 9-Apr W 8-Apr T 7-Apr M 6-Apr S 5-Apr S 4-Apr F 3-Apr T 2-Apr W 1-Apr T 31-Mar M 30-Mar S 29-Mar S 28-Mar F 27-Mar T 26-Mar W 25-Mar T 24-Mar Date M 23-Mar S 22-Mar S 21-Mar F 20-Mar T 19-Mar W 18-Mar T 17-Mar M 16-Mar S 15-Mar S 14-Mar F 13-Mar T 12-Mar W 11-Mar T 10-Mar M 9-Mar S 8-Mar S 7-Mar F 6-Mar T 5-Mar W 4-Mar T 3-Mar M 2-Mar S 1-Mar Campaign D S 28-Feb F 27-Feb T 26-Feb W 25-Feb T 24-Feb Sales by contribution (units)
  16. 16. Before Contribution Contribution Net Business Unit gained lost contribution A 200,000 (150,000) 50,000 B 400,000 (200,000) 200,000 C 500,000 (250,000) 250,000 D 300,000 (500,000) (200,000) E 200,000 (100,000) 100,000 Total 1,600,000 (1,200,000) 400,000 Eight week period
  17. 17. After Contribution Contribution Net Business Unit gained lost contribution A 150,000 (50,000) 100,000 B 350,000 (50,000) 300,000 C 450,000 (100,000) 350,000 D 250,000 (150,000) 100,000 E 150,000 (50,000) 100,000 Total 1,350,000 (400,000) 950,000 A reduction of An improvement of An improvement of Eight week period £250k £800k £550k
  18. 18. Is this approach for you? 18
  19. 19. AdNav – Good client “fit”  Heavy media user  Sales responses are at least as important as brand building  Sales data is available daily and by region  Media plans are reviewed and adjusted to fit changing market conditions
  20. 20. Feasibility Study Data availability Data accuracy Data variation
  21. 21. Feasibility Study Find Correlations Check Inter-Correlations Build One-Day Model
  22. 22. Feasibility Score Card Issue Score Data Availability Data Accuracy Data Variability Correlations and Inter-correlations One Day Model Total marks out of 100
  23. 23. About VBMF VBMF £ Consultancy established in 1989 £ Combining analytical and systems expertise £ Academic input maintains us at leading edge Cass Business School  The business school for the City of London  High in the research league tables globally  International mix of students from 60 countries 23
  24. 24. 24

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