Measuring the short, medium and long-term effects of marketing activities
The proof of the marketing ROI and the optimal distribution of the marketing budget on all channels and instruments is a must in modern marketing management. However, classical marketing mix modeling faces two challenges in view of the increasing number of relevant channels. Firstly, the number of data sets compared to the number of channels is no longer sufficient. Added to this are the new interactions between channels (e.g. “paid media” leads to more “earned media” contacts) which conventional econometric models do not reflect appropriately.
We use a powerful regression technique that is fairly unknown in econometrics but has been used as the main method in genomics and chemometrics for over 20 years. It allows under certain conditions (which we create), e.g. with the 50 data sets of one year, to prove the effect of 50 marketing channels.
Furthermore, we use the method in such a way that we map the indirect sales impact in the sense of an impact network (e.g. from paid to earned on owned media).
In addition, we supplement the data sets with internal or external brand tracking data (e.g. through social listening) and thus make it possible to measure long-term advertising effects.
- All relevant marketing channels are evaluated in a single uniform model.
- The often indirectly impacting Above-The-Line media are again evaluated according to cause.
- Medium and long-term effects are mapped and evaluated
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