Most Companies had the notion that TV, print, radio and online ads each functioned independently

to drive sales.

Traditional Ad Budget Allocation

Tv Ads

Youtube

Search Ads

Others

6%

4% 5%

85%

were nearly twice

effective in prompting online

searches that led to

purchases.

And….

Search Ads generated

25% sales.

Swim-Lane Measurement

“Marketers commonly measures

the performance each of their

advertising activities as if they

work independently of one

another.”

That‟s no longer effective!

Because…!

Advertising touch points does

not works in isolation.

They interact.

After advent of Digital Marketing

marketers are able to track

every online action of

consumers.

But it generates oceans of

data within a moment.

Analytic1.0 to Analytics 2.0

Analytics 2.0

With the predictive tools (latest

computing technologies, cloud-

based analytics and cheap data

storage) measures interaction of

advertising across media and sale

channels and identifies precisely

how exogenous variables affect ad

performance.

Analytics 2.0

Provides fundamentally new

insights into marketing‟s effect

on revenue.

Analytics 2.0

Involves three broad activities:

Attribution,

Optimization,

Allocation.

1.Attribution

The process of quantifying the contribution of each element of advertising.

$

TV Ads

Display Ads

Social Media

Paid search

PR

E-Mails

Others

Start by gathering data…

Challenge…!!!

Knowing what to focus on-the

single rather than the noise.

Companies must collect data across five

categories:

Marketing conditions

Competitive activities

Marketing actions

Consumer response

Business outcomes

2.Optimization

Or War gaming!

-by using predictive analytics

tools to run scenarios for

business planning.

It‟s like advertising virtually and

observing the effect of different

advertising mediums.

You can assign „elasticity‟ to

every business drivers you‟ve

measured, from TV advertising

to search ads to fuel price and

local temperatures.

War gaming runs thousands of

scenarios within minutes.

Can test „What if‟

conditions.

Thus Optimization software

generates most likely scenarios

along with marketing

recommendation.

Then…?

3.Allocation

“Real-time redistribution of

resources across marketing

activities according to

optimization scenarios.”

On monthly, weekly or daily basis-

and, online, even from one fraction

of a second to the next.

Five steps to implementation

First, embrace analytics 2.0 as an

organization-wide effort that must

be champion by a C-level executive

sponsor.

Second, assign an analytics-

minded director or manager to

become the point person for the

effort.

Third, armed with a prioritized

list of questions you seek to

answer, conduct an inventory of

data throughout organization.

Fourth, start small with proofs of

concept involving a particular

line of business, geography, or

product group.

Fifth, test aggressively and feed

the result back into the model.

In a multichannel business

analytics 2.0 becomes more

complex and requires vendors

with specific analytics and

computing abilities.

Companies that don’t adopt

next-generation analytics will be

overtaken by those that do.

THANK YOU!