Any consultant or analyst has projects which they regard as great successes, and will gladly talk about at length, maybe even writing case studies about them. But they will also have projects which went less well, and this is often where the best lessons are to be found. One of the worst modelling projects that …
You cannot double spend and expect sales to double. Advertising on auction-based platforms like Meta or Google exhibits diminishing returns, meaning as you increase spend, efficiency suffers. When you continue to increase your advertising spend you see increased customer acquisition cost (CAC) and lower return on investment (ROI). Essentially, there’s a trade-off between spend and …
Diminishing Returns: Accounting for Channel Saturation Read More »
Marketing Mix Modeling (MMM) is hard. The core difficulty is that MMM is trying to solve a causal inference problem where there is no ground truth to compare the model results with. There is no ground truth source that can tell us what the true incrementality of TV is as an advertising channel. That means …
MMM is about Causation not just Correlation At the highest level, the idea behind MMM is to look at the correlation between marketing activity on one side and business results (revenue, new customers, leads, etc.) on the other. However, we don’t just want correlation. We want to actually estimate causation, so we want to be …
With digital tracking breaking since iOS14, the death of the cookie, and new privacy laws like GDPR and CPRA, media buyers seem to be scrambling for any way to better target their audience and to accurately measure their campaign’s impact. Data clean rooms have been proposed as a solution to this issue, but are they? …
Do Data Clean Rooms Really Solve the Attribution Problem? Read More »
Sales and promotions are a tricky concept and many ecommerce brands struggle to measure them correctly. We’ve all seen the marketers who, after running a sale, go on Twitter to celebrate their “biggest day ever.” But was it the right thing for the business? It’s important to have a much more subtle understanding of how …
Unraveling the Impact of Pull Forward Promotions: Are They Really Incremental? Read More »
Knowing whether brand search is incremental for your brand or not is often a question worth tens of thousands, hundreds of thousands, or millions of dollars. It directly impacts your overall marketing strategy and your budget allocation. The answer to that question is often brand-specific and we can’t tell you whether it is incremental for …
The Conundrum of Brand Search: Is it Incremental and Actually Driving You That ROI? Read More »
How can marketers track what cannot be tracked? The ‘dark funnel’ is one of the main challenges we all face when it comes to attribution. Over the past decade, marketers have relied on digital tracking and following consumers across their entire buying journey. However, there were “blind spots” where you’d lose visibility and they’d become …
Shining a Light on the Dark Funnel: Overcoming Attribution Challenges with MMM Read More »
Marketing efforts in one channel can impact traffic and attribution in other channels. This positive or negative interaction between different marketing channels is called the halo effect. Here are some common examples: Measuring this impact between channels is extremely important to optimize the media mix: Heads of marketing usually allocate the budget per channel based …
Halo effect: measuring the impact between different marketing channels Read More »
As a former agency owner, I know first-hand the importance of measuring marketing performance accurately. In the world of Direct-to-Consumer (DTC) marketing, the gurus you follow on Twitter will tell you that the Marketing Efficiency Ratio (MER) is the overriding measure of success. However if you blindly follow their advice, you’re going to run into …
