Advertising Analytics 2.0

A D V E R T I S I N G A N A L Y T I C S 2 . 0V I N N I E G U L I S A N O

T E L E V I S I O N

T E L E V I S I O N

R A D I O

R A D I O

P R I N T

P R I N T

V S

ON L I N E

O N L I N E

M E D I A M I X M O D E L I N G

def in i t ion

a model for knowing precisely how all of the moving parts of an advertising campaign collectively drive sales and what happens when you adjust certain variables.

m e · d i · a / m i k s / m ä d l - i N G

S W I M L A N E S

50

37.5

25

12.5

0

s o c i a l m e d i a p p c e m a i l t w i t t e r o r g a n i c s e a r c h t v a f f i l i a t e s p r d i s p l a y A d s

A s s i s t e d S w i m L a n e

S W I M L A N E S

N I S S A N E X A M P L E

Q U E S T I O N S

01

02

How did this combination of advertising exposure interact to influence the customer?

Is Nissan investing the right amount of budget at the right points in the consumer journey?

D A T A D E L U G E

Every day, three times per second, we produce the equivalent of the amount of data that the Library of Congress has in its entire print collection. Most of it is...irrelevant noise. So unless you have good

techniques for filtering and processing the information. You’re going to be in trouble.

- Nate Silver, Statistician

““

O L D W O R L D

N E W W O R L D

V S

Implementation of Analytics 2.0 means building the required infrastructure and merging it in organizational culture, strategy development and operations. Any company can begin that journey;

businesses that don’t will be overtaken by those that do.

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AT T R I B U T I O N O P T I M I Z AT I O N A L LO C AT I O N

A T T R I B U T I O N

Gather Data

Know what to focus on

Data pars ing can revea l ass i s t rates

Customer journeys are impor tant

U S I N G S T A T I S T I C A L M O D E L S I N A T T R I B U T I O N

A T T R I B U T I O N O P T I M I Z A T I O N

How rea l -wor ld scenar ios a f fect your market ing mix .

Used to ident i fy the impl icat ions of adver t i s ing.

Must have spec i f ic S .M .A .R .T. goa ls

War-Gaming can be used as a compet i t i ve ana lys i s for “unknowns”

( W A R - G A M I N G )

O P T I M I Z A T I O N A D V E R T I S I N G

s e a s o n

m a r k e t i n gact i o n s

co m p e t i t i v eact i v i t i e s

season

fuel process

unemploymentrates

othereconomicfactors

consumerconfidence

televisionads

printads

directmail

radionativecontent

paid search

socialmedia

onlinedisplay

mobileapps

Cinema

earnedmedia

publicrelations

promotions salesactivities

customerservice

competitoradvertising

new-productreleases

promotionspricing

pricing

attribution optimization allocation

1 2 3

a n a ly t i c s e n g i n e

co n s u m e r r e s p o n s e

searchonline chatter

store visitspurchasing

b u s i n e s s o u tco m e s

unit salesrevenuesmargins

market shareshare of voice

customer lifetime value

A L L O C A T I O N

The “run-and-done” model i s archa ic

Attr ibut ion and w ar-gaming ef for ts into the market

H O W A D S I N T E R A C T

NOV DEC JAN

searchqueryvolume

tv grossspending

c a m p a i g nb u d g e t

p r o d u c ts a l e s

t v p a i ds e a r c h

o n l i n ed i s p l a y

y o u t u b e

-12%

+90%

+32%

t v

y o u t u b e p a i ds e a r c h

Ad SpendingReallocation

C R E A T E A C U LT U R E O F F A C T - B A S E D D E C I S I O N M A K I N G W I T H I N A D V E R T I S I N G .

5 S T E P S T O I M P L E M E N T A T I O N

0102

0304

05

Analytics 2.0 needs to be embraced by C-level executive sponsors.

Assign an analytics-minded director/manager to be point person

Conduct an inventory of data

Start with small proofs of concept involving business, geography or products.

Test aggressively.

C O M P L E X I T I E S

R E C O M M E N D E D R E A D I N G

N A T E S I L V E R ( A U T H O R ) E R I C S I E G E L ( A U T H O R )

T H E S I G N A L A N D T H E N O I S E : W H Y S O M A N Y P R E D I C T I O N S F A I L — B U T S O M E D O N ’ T

P R E D I C T I V E A N A L Y T I C S : T H E P O W E R T O P R E D I C T W H O W I L L C L I C K , B U Y , L I E , O R D I E

T H A N K Y O U .contact information — vinnie@prpl.rs