Associate Director Ben Waters offers highlights from the presentation he and Analytic Partners’ EVP Maggie Merklin gave at ARF, Audience Measurement 2017
In a dynamically changing world, an adaptive framework for measuring marketing impact provides a significant competitive advantage.
To deliver the right message to the right person at the right time, marketers aspire to achieve a 360-degree view of our customers performance; one that unifies all pertinent interactions, both online and offline. In a perfect world, we’d be able to establish an identity that follows a customer journey through email, social media, and TV – across devices. The reality is, the industry isn’t there yet.
Today’s marketers must contend with imperfect data, emerging media, and rapidly evolving technology. In addition, they must interpret how these variables and unknowns effect each client individually, within the applicable industry context.
Technology industry analyst firms agree on the following general guidance in applying methodologies.
- If most your sales and media are online, and you have user-level data records, Multi-Touch Attribution (MTA) may be the preferred methodology.
- If most your sales and media are offline, and you have aggregate user data, Marketing Mix Modeling (MMM) may be the preferred methodology.
- If your sales and user data are mixed, Unified Measurement may be the preferred methodology.
In practice, some blending of these broad parameters is usually most effective in meeting the needs of a specific client.
To best serve the needs of a client, an adaptive framework is essential at all phases of the analysis. At the Audience Measurement Conference, we presented case studies illustrating three different approaches to analytics. All three of these approaches illustrate the adaptive framework used by Analytic Partners.
In one scenario, the insights gained from the adaptive analysis resulted in an effective strategy of real-time placement decisions for digital ads:
The company in this scenario is a specialty home goods brand with seasonal, weather-driven sales. Since most sales are made through retailers, a direct view of the customer is obscured. Analysis by the team uncovered there was a close connection between ad performance and weather conditions. By analyzing a wide range of raw weather metrics, the team identified three key metrics, which were combined to build weather “profiles” to match a consumer’s experience of weather. By understanding optimal profiles, the team was able to identify opportunity to reduce budget inefficiencies during poor conditions. The output was multiple detailed decision trees driving the real-time placement of digital ads, dynamic creative, and bid optimization, to take advantage of weather conditions in real time.
The result? Leveraging optimal conditions the brand could see a 4-10x increase in digital ad performance and Analytic Partners delivered a strategy to increase ROI by +30% annually. The efficacy of the adaptive framework extends well beyond today’s market conditions. It is an essential framework for evolving to meet the challenges of the expanding universe of market conditions to come. We can reliably expect the pace of change to accelerate. All the more reason why the agility of the adaptive framework is an essential component for those companies who will adapt, evolve, and thrive.
To learn more about…
Adaptability: The New Competitive Advantage from Harvard Business Review
Unified Measurement from Analytic Partners