Marketing Mix Modeling to Improve Business Impact
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An established electronics brand changed their marketing strategy to focus on brand promotion and simultaneously started growing their direct-to-consumer business through their website. They worked with Analytic Partners to find the drivers behind short- and long-term ROI and brand health.
Our electronics client is active in a highly competitive environment and was losing sales to e-commerce competitors. After multiple years of heavy online and product-focused advertising, the company switched to strong, emotional creatives and increased TV investment. Though sales had almost immediately improved afterwards, they were looking for deeper insights into how different media channels influence brand metrics and how this impacts sales in the long term.
Short-term impact of marketing on sales.
Long-term impact of marketing activities on brand metrics.
Relationship between brand metrics and sales.
The models were then combined to measure their impact against each other. Together, the sets of metrics formed a unified, holistic overview of marketing activities, which could then be utilized to balance future investment towards short-term efficiency and long-term brand health. Analytic Partners recommended an optimized media spend based on the consumer’s relatively long consideration process – from brand building to the actual sale.
The analysis revealed that video formats have the strongest impact on brand metrics. Social media has the strongest short-term ROI but a relatively lower impact on brand metrics than video formats. Display and paid search were under performing in the long term.
By bringing together short- and long-term ROI, Analytic Partners recommended an optimized media spend that led to an opportunity for an additional 20% in profit.
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