This document discusses implementing analytics 2.0 in advertising. It explains how media mix modeling allows understanding how different advertising variables collectively drive sales. Nissan is used as an example to show how different exposures like social media, search, TV, and others interacted to influence customers. The document advocates building infrastructure to merge analytics into company culture, strategy, and operations. It outlines attribution, optimization, and allocation of marketing budgets based on data and outlines five steps to implement analytics 2.0 in an organization.

1. A D V E R T I S I N G A N A L Y T I C S 2 . 0
V I N N I E G U L I S A N O

2. T E L E V I S I O N
T E L E V I S I O N
R A D I O
R A D I O
P R I N T
P R I N T
V S
O N L I N E
O N L I N E

3. M E D I A M I X M O D E L I N G
definition
a model for knowing precisely how all of the moving parts of an advertising campaign
collectively drive sales and what happens when you adjust certain variables.
m e · d i · a / m i k s / m ä d l - i N G

4. S W I M L A N E S

5. 50
37.5
25
12.5
0
s o c i a l m e d i a p p c e m a i l t w i t t e r o r g a n i c s e a r c h t v a f f i l i at e s p r d i s p l ay A d s
A s s i s t e d S w i m L a n e
S W I M L A N E S

6. N I S S A N E X A M P L E

7. Q U E S T I O N S
01
02
How did this combination of advertising exposure interact to influence the customer?
Is Nissan investing the right amount of budget at the right points in the consumer journey?

8. D A T A D E L U G E
Every day, three times per second, we produce the equivalent of the amount of data that the Library
of Congress has in its entire print collection. Most of it is...irrelevant noise. So unless you have good
techniques for filtering and processing the information. You’re going to be in trouble.
- Nate Silver, Statistician
“
“

9. O L D W O R L D
N E W W O R L D
V S

10. Implementation of Analytics 2.0 means building the required infrastructure and merging it in
organizational culture, strategy development and operations. Any company can begin that journey;
businesses that don’t will be overtaken by those that do.
“
“

11. AT T R I B U T I O N O P T I M I Z AT I O N A L L O C AT I O N

12. A T T R I B U T I O N
Gather Data
Know what to focus on
Data parsing can reveal assist rates
Customer journeys are important

13. U S I N G S T A T I S T I C A L M O D E L S
I N A T T R I B U T I O N

14. A T T R I B U T I O N O P T I M I Z A T I O N
How real-world scenarios affect your marketing mix.
Used to identify the implications of advertising.
Must have specific S.M.A.R.T. goals
War-Gaming can be used as a competitive analysis for “unknowns”
( WA R - G A M I N G )

15. O P T I M I Z A T I O N A D V E R T I S I N G
season
marketing
actions
competitive
activities
season
fuel process
unemployment
rates
other
economic
factors
consumer
confidence
television
ads
print
ads
direct
mail
radionative
content
paid
search
social
media
online
display
mobile
apps
Cinema
earned
media
public
relations
promotions sales
activities
customer
service
competitor
advertising
new-
product
releases
promotionspricing
pricing
attribution optimization allocation
1 2 3
analytics engine
consumer response
search
online chatter
store visits
purchasing
business outcomes
unit sales
revenues
margins
market share
share of voice
customer lifetime value

16. A L L O C A T I O N
The “run-and-done” model is archaic
Attribution and war-gaming efforts into the market

17. H O W A D S I N T E R A C T
N O V D E C J A N
search
query
volume
tv gross
spending
c a m p a i g n
b u d g e t
p r o d u c t
s a l e s
t v p a i d
s e a r c h
o n l i n e
d i s p l ay
y o u t u b e
-12%
+90%
+32%
t v
y o u t u b e p a i d
s e a r c h
Ad Spending
Reallocation

18. C R E AT E A C U LT U R E O F F A C T - B A S E D D E C I S I O N
M A K I N G W I T H I N A D V E R T I S I N G .

19. 5 S T E P S T O I M P L E M E N T A T I O N
01
02
03
04
05
Analytics 2.0 needs to be embraced by C-level executive sponsors.
Assign an analytics-minded director/manager to be point person
Conduct an inventory of data
Start with small proofs of concept involving business, geography or products.
Test aggressively.

20. C O M P L E X I T I E S

21. R E C O M M E N D E D R E A D I N G
N AT E S I LV E R ( A U T H O R ) E R I C S I E G E L ( A U T H O R )
T H E S I G N A L A N D T H E
N O I S E : W H Y S O M A N Y
P R E D I C T I O N S F A I L —
B U T S O M E D O N ’ T
P R E D I C T I V E A N A L Y T I C S :
T H E P O W E R T O P R E D I C T
W H O W I L L C L I C K , B U Y , L I E ,
O R D I E

22. T H A N K Y O U .contact information — vinnie@prpl.rs