Marketing Mix Modelling With Facebook

By Sean Dunn | September 21, 2018

Nepa’s participation in Facebook’s Marketing Mix Modelling partnership and inclusion of long-term brand effects allows leading multi-national FMCG brand to improve media’s contribution to sales 12% without increased spending.

In 2018, an International consumer packaged goods company was experiencing decreasing sales and brand equity due to loss of mid-priced products in the marketplace, growing private label products and more intensive promotion. The manufacturer tasked Nepa to find the optimum media mix to be the catalyst in turning around the downward trend. Nepa supported the brand by answering the following questions using our Marketing Mix Modelling expertise.

  1. How efficiently do different medias generate short term sales vs. long term brand effects?
  2. How does communication effect sales compared to brand?
  3. What is the optimal media communication strategy?
  4. What is the optimal level of total media investment?
  5. What is the optimal media mix?

Solution

To support the brand and its challenges, Nepa conducted a marketing mix project focusing on short-term effects on sales and long-term brand effects of media investments. Our simulations showed that media investments should shift to Facebook and Instagram, using budget from Radio, Print, Google search and Display & Programmatic. 

“We had an MMM performed for our FMCG brand which gave valuable insights into which media will best help us maximize ROI in terms of balancing short-term sales vs long-term brand building. It also gave us deeper insights into what role Facebook plays in our overall marketing mix.” -Marketing Director, International FMCG Company 

Results Worth +140 000 EUR

We showed the client that by simply optimizing the media mix they could raise media sales +12% without any additional costs. The estimated impact of this new optimized marketing mix was worth +140 000 EUR, plus the added benefits of brand value contributing to long-term sales.

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