Make continuous use of marketing insights
Today ROI on marketing investments is top of mind for senior executives across every industry – globally. As the adoption of Marketing Mix Modeling and marketing ROI measurement evolves, so does the need for commercial effectiveness. Companies expect increased continuity, much more detailed data granularity and complete holistic reporting. Therefore, having the ability of extracting relevant data, quickly turning it into actionable insights that will have an immediate impact. That is as long as they are distributed to those who are able to put the insights into immediate use.
What is Marketing Mix Modeling?
To summarize, Marketing Mix Modeling (MMM) is an econometric method (quantitative techniques for making relevant economic business decisions). Therefore, it gives insight in to how different marketing and media channel investments influence business performance. For example, what activities deliver returns on sales and what do not.
READ ALSO: Optimise your marketing budget with Marketing Mix Modeling
What outcome can you expect?
Applying an MMM-tool will drive a high level of improvements in your marketing effectiveness; with fact-based ROI optimization to marketing and media investments. So, no matter what MMM provider you turn to, it is generally is on:
- Increased revenue
- How marketing and media investments drive traffic to stores or websites
- Increased profit level
- Increased number of transactions/usage of a service
So, the findings are typically used to inform and verify decision making related to marketing budget and allocation between different marketing channels.
Nepa MMM focus on much more than increasing sales
Nepa conducts MMM reviews, for a large number of industries and countries, for a wide array of products and services. Specifically, this can range from consumer packaged goods (CPG) to financial or subscription services for clients operating in and out of the digital world.
In addition, most providers that offer MMM services focus only on the relation between marketing investments and sales effect. However, Nepa offers a broader scope. We apply our advanced skills in data science, innovative analytics, and leading experience in brand tracking.
READ ALSO: Benefits of Path to Purchase analysis
1. We measure the impact of marketing in social media
Unlike in other types of media, it has previously been impossible to measure the impact of marketing and media investments in the rapidly growing social media channel. Nepa has signed a unique and global agreement with Facebook in Palo Alto. We were chosen as one of the first companies globally to become partners with Facebook in the “Facebook MMM Partner Program”.
By having a direct digital connection, tapping into very granular data within every marketing campaign, with every company on the planet that run on Facebook, Instagram, Messenger and Audience Network, we can help buyers of media to spend much smarter in our rapidly changing media landscape that most others can’t. Some implications of this is:
You get better insights on the role of digital domain in the entire media mix
Detailed digital data (social media data) provides improved precision in analysis models that allow us to see the effects of media; unless this granularity of data is available.
You get better insights on how to optimize within the digital domain
Detailed digital data provides perfect understanding of the effects of advertising in social media, with the determination of for example, ROI for different:
- campaign periods and ads
- units (Desktop, Mobile)
- platforms (Facebook, Instagram…)
- ad placings (Newsfeed, RHS)
- ads targeting different groups
It also enables detailed regional models for advertisers, with the determination of:
- Differences in ROI for different countries and regions
2. We manage both short and long term marketing effectiveness
Nepa is the leading brand tracking supplier in the Nordics; following over 150 brand categories. We have extensive experience in understanding the importance of generating brand effects and its implication on long term sales. When conducting MMM projects with Nepa, you get a nuanced perspective of the brand versus the sales drivers.
In our projects, there has been a significant difference from the ones helping to drive sales in the upcoming years. By considering the holistic perspective of the medias effect of driving the business; a much different media mix is often optimal compared to the optimal media mix optimizing short term sales.
Want to know more about the Nepa approach to MMM?
Nepa’s approach offers state of the art statistical and mathematical skills. So, to set up and operate a comprehensive Marketing Mix Modeling program, you need to:
- establish clear objectives
- decide on how your organization intends to use the results
For example, how will the learning be disseminated throughout your organization to obtain continuous improvement and to improve strategic planning?
In conclusion, the knowledge you have of your business combined with Nepa’s experience in econometric modeling and our approach to Marketing Mix Modeling is important. Hence, it will enable us to identify a sustained approach to marketing activity planning that delivers long-term sales growth and improved profitability.
READ ALSO: What is brand tracking and why is it important?
We promise to help you get in-depth answers to business questions like:
- What is the optimal spend and mix of marketing investments to achieve financial objectives?
- What is the optimal total media spend and how should you mix the media?
- How to optimize investments to drive sales and profit by customer segment?
- What is the ROI for all your marketing activities and what type of content is most effective?
- How much is marketing activities contributing to relevant brand KPIs?
- How to balance investments in brand building vs. product focused marketing?
- What would be the future impact of a change in the marketing strategy and budget?
- How does marketing perform in-season vs. out of season? What is the optimal timing and execution?
- How to optimize the value of a loyalty program?
- What is the optimal sequence of activities to drive customer behavior (next best action)?
- How does marketing effectiveness vary by media channel and geography?
- How to take advantage of media synergies? What is the role of paid, earned and owned media?
To hear more about our holistic ROI-approach and your opportunities to sharpen the data-driven decision making, let´s book a 1:1 meeting!
Product Director at Nepa