It is easy to say agencies should focus on marketing techniques that contribute to client KPIs but this is easier said than done. Many measurement solutions can only capture part of the marketplace or part of the funnel and lack insight into how marketing impacts the long-term bottom line of a business.
Marketing efforts incorporate a myriad of variables: the target audience, the product or service, and various channels. These factors determine how we allocate budgets and require unique measurement solutions to optimize.
The most common and easiest method is to use short-term signals from each media channel. This refers to clicks from digital ads, site visits in the wake of television spots, and more.
Short-term signals strategy may provide immediate results but they paint an incomplete picture. Many solutions optimize a single channel in isolation, rely on incomplete conversion data, and fail to truly understand the full collective impact of marketing efforts.
A more precise and robust approach to advanced marketing analytics techniques utilizes marketing mix modeling (MMM). This approach relies on the identification of evidence that is both statistically significant and points to instances when media drove an incremental lift to sales, leads, or other KPIs.
The technique for this particular marketing analytics technique uses two important variables in its calculations: marketing efforts (spends, impressions, GRPs, and clicks) and business KPIs (new customers and revenue).
When models find relationships between those media variables and business results, we can have confidence that this model reveals something accurate about consumer behavior.
This marketing analytics technique tells us which media channels are performing. Clients can then decide where to allocate their media spends moving forward.
In short, media mix models analyze all of a client’s media channels plus non-media-based business drivers. It measures the business impact of each channel so agencies and their clients can optimize the mix and continue to forecast results.
Leavened’s approach harnesses the power of this technique but does so at a level so advanced it usually takes in-house PhDs to execute the non-linear mathematics necessary for these models.
But this is what sets Leavened apart: We get results faster at lower costs and with more transparency than other marketing analytics techniques. And we can teach your staff to use the tools themselves. And you can brand it as your own.
Historically this approach took months to complete and was so costly that most brands could only afford it once a year. Leavened’s approach can be initiated within weeks and provide monthly or quarterly snapshots of the media’s impact through model scoring. This approach also allows for daypart, placement, and tactical level insights that keep up with media spends so placements can be optimized in-market!
There is so much big data, analytics (including market trend analytics and analysis of conversion rates), and forecasting that can be simplified with the Leavened market analysis approach. We think you and your clients will appreciate how real-time data informs marketing teams and the decisions they make to drive client business forward.