Helping CEOs, CFOs and CMOs Sleep Better at Night
Through our recent work in assessing the ROI measurement landscape, Sequent Partners has seen a tidal shift in sentiment toward marketing mix modeling. Long a stalwart of corporate finance and marketing, some people still view mix models as too slow, too macro and too backwards-looking. The speed and agility of digital attribution modeling flickers ahead, like the glittering lights of Las Vegas against the starkness of the desert night, and marketers are urgently thinking about ROI measurement and driving business investments with ROI insights—at the tempo and granularity of today’s decision-making.
But there’s something else happening. Something more important. Digital attribution, no matter how sophisticated, is still solely about a marketer’s digital investment. It rarely takes into account the impact of traditional marketing and other important factors. Historically, marketing mix models—again, no matter how sophisticated—have been about the marketing and media mix, which can represent as little as 10% of corporate budgets, depending upon the industry. It’s evident to us that in many industries, successful marketing, both traditional and digital, is highly dependent on not only working together, but also working with sales, operations and other important internal investment areas. We’ve come to realize that too much of the dialogue in analytics is focused on the digital and offline marketing silos.
Measuring Digital Attribution Outside of a Silo and Within the Context of the Customer’s World
By Nigel Foote
Marketers have sought to understand the impact of all the elements of marketing on revenue and profit — in other words, to properly attribute the contribution of incremental revenue that each tactic delivers. For years, commercial effectiveness analytics and marketing mix modeling fulfilled this function, but as marketing tactics have gone digital the need to understand how they impact customers as well as properly attribute their effects has become increasingly important.
Today there are many “bright and shiny new objects” in the digital attribution space that offer solutions to understanding the impact to digital. Unfortunately, many if not most fail to look at digital through a customer’s lens. This creates a real danger of looking at effectiveness in a digital “silo” removed from the context in which customers really make purchase decisions.
Optimizing Net Attribution Across Digital, Social, Offline Marketing and a Broad Range of Commercial Drivers
By Douglas Brooks
Quantifying the real impact and value of marketing, especially through digital channels, on short and long-term growth is increasingly more challenging – executives are too often struggling with increasing marketing budgets but aren’t necessarily seeing the top or bottom-line growth to justify incremental investment. More and more marketing is impacted by a holistic set of variables that include sales force, product and operational factors as well as external influencers. Making analysis of marketing ROI even more complicated is the need to understand and accurately attribute the impact of highly granular digital and CRM tactics at an individual customer level. It’s in these latter areas, where the richness and granular level of the data behind such tactics – coupled with the right predictive analytics and strategic approach – is helping Fortune 1000 companies create holistic, more precise targeting and high-value commercial optimization capabilities.
More than 25 years ago, MMA pioneered the use of marketing mix modeling and today remains one of the industry leaders in the space across a wide range of industry verticals. We’ve extended our core marketing mix capability (which is now known by many clients as Commercial Effectiveness) by integrating data sources specific to the major industries we serve, and a wide range of digital and social media captured through DMPs, on-boarders and directly from publishers to reflect the changing marketing and media environments around us, and the consumer behavior which results. I’ve also had the responsibility and privilege of advising senior decision makers—CEOs, CMOs, CFOs–on marketing investment choices for almost as many years across some of the world’s leading companies and brands, and marketing mix modeling has always been a core part of my analytical tool set.
Left to Right: Todd Gustafson, PhD (EVP Analytics), Patrick Moriarty, PhD (SVP GM), Doug Brooks (EVP Global Account Management)
MMA was proud to accept Innovation Enterprises “Best Use of Data To Improve Marketing Effectiveness Award” earlier this year. MMA Executives, Doug Brooks (EVP Global Account Management), Patrick Moriarty, PhD (SVP GM) and Todd Gustafson, PhD (EVP Analytics) accepted the award. MMA was nominated by one of its national retailer clients.
Ipsos and MMA are dedicated to supporting education for disadvantaged children worldwide. MMA is honored to make a significant donation to the Ipsos Foundation in the name of each of our clients in the United States and Canada to help rebuild a school in Jaubari, Nepal, which was devastated by a massive earthquake in April of 2015.