Commercial Mix Analytics: Measurement Evolved
Read The Report
Why do I need this?
Solving the age-old question of “how can I best invest my budget?” has never been more crucial or more complex. Quantifying what contributes to business performance, including accurately attributing the impact of marketing spend, has challenged brands for decades. With billions of dollars on the line and consumers shopping across platforms and media channels, Analytic Partners goes beyond Marketing Mix Modeling (MMM) to give marketers the confidence they are making the right investment decision. We call this foundational analysis “Commercial Mix Modeling.” Where MMM models are limited in scope and are often slow and high-level, our models are not limited to measuring how a marketing mix performs, they also investigate deeply into granular beyond-marketing drivers and operational factors that contribute to performance outcomes. Our measurement is powered and directed by our proprietary analytic engine that supports unlimited dimensions and a range of intelligent modeling algorithms to address both strategic and tactical decisions through a customer and full-business lens.
How does it work?
Analytic Partners uses advanced measurement techniques that deconstruct and quantify the performance of each element of the marketing mix. We go a step further and address the whole business at a deeper, more granular level through Commercial Mix Modeling, which covers additional layers like branding, campaign, Touchpoint Analytics, customer analytics, and operational analytics. We customize each model to address specific market, brand, and business challenges. Leverage Commercial Mix Models to identify performance drivers and provide deeper insight on the root causes of that performance. This systematic approach produces deeper and more actionable insights than MMM, offering tangible and operational insights. It is faster, more granular, and can not only tell you what happened but also lend insights into what you need to do next. The result? Insights that will increase your sales, market share, and business results.
What makes it effective?
As practiced by Analytics Partners, Commercial Mix Models accommodate all forms of marketing activity and delivers holistic results that go beyond channels to campaign, geography, store and even further to segments and personas. Commercial Mix Modeling offers the ability to integrate multiple KPIs, brands and omnichannel factors. With faster data onboarding and Analytic Partners technology, models are developed, tested, and providing insight for media optimization within a matter of weeks, not months. And for brands that need “always-on models”, Live Models provide speed to insights that no other MMM provider or top marketing mix modeling company can offer.
What is the ROI of the spend of my media mix? Most of media’s effect is not immediate, and any marketing mix needs to factor in the response over subsequent days and weeks following exposure, as well as overall halo effects. Media exposures may drive immediate incremental conversion, but a large part of its influence is often misunderstood or misattributed in the short and long term. This is true for all media, even digital channels such as video, display, social, and search. The amount of indirect, synergistic, and cascading impacts – across channels and time – is significant and important to take into account when planning. Considering only what can easily be measured in a marketing mix model is misleading and can lead to poor decisions
How do non-marketing factors like competitive data and weather impact my marketing mix ROI? Performance drivers can be very complex, and interactions are common across controllable and non-controllable as well as internal and external factors. External factors include natural demand that can change over time or between different types of customers, as well as the efforts of competitors. Understanding the role competitors’ efforts play and how they impact your business is crucial. The Analytic Partners ROI Genome shows that if a single similarly sized competitor were to double their advertising and promotion budgets, the average brand would stand to lose 15% of its overall business that year.
How does online vs offline media contribute to my ROI? From a consumer perspective, today’s world is omnichannel. A buyer may be exposed to a product through a streaming video advertisement, check out the product in a store but ultimately decide to buy it online through their mobile phone. Brands need to keep up with this behavior by ensuring the consumer is at the center of their marketing model strategy. We have seen consistently that all media has an omnichannel impact, which means both offline physical store presence and online presence are critical components of the consumer experience. These channels work together and be accounted for in marketing mix models, rather than compete against one another.
How can I optimize my marketing mix and media mix? A holistic, data-driven measurement strategy to critical to optimizing any brand’s marketing mix. Analytic Partners’ ROI Genome shows that businesses with strong organizational adoption of analytics that take actions on the recommendations generate 5x the growth of those that do not. This translates into a significant 25-70% improvement in the performance of marketing investments through the combination of analytics like mix models and scenario planning. Taking into account media and advertising, price changes, and special promotional offers, as well as halo and cannibalization is important for any robust simulation or forecast focused on optimization. Our research also showcases that the impact can be sustained and additive to accumulate unlimited growth potential and value over time.
What is the incremental impact of my marketing activities on baseline sales? Getting the full picture of incremental marketing impact means developing a clear understanding of how each channel impacts others in the ecosystem and having a holistic view of the relative importance of various marketing factors through MMM. For example, advertising impact should be looked at not only through the lens of the product or service being advertised but also in terms of the halo effect. Halo has a strong impact on performance, which could be missed if businesses are not engaged in holistic measurement. Siloed measurement leads to planning and executing online marketing and offline marketing separately, and that is not a winning strategy. Further, that kind of strategy makes it remarkably difficult to accurately measure the incremental impact of marketing. Rather, it’s about creating a unified, holistic view across tactics and channels, and understanding the short and long-term impact each channel offers while keeping the consumer in mind, from the start of their omnichannel journey through purchase and beyond.
Analytic Partners can help your business adapt.Contact