Promotions & advertising: accurately measured but poorly understood

1. 0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
SalesROI
0
1
2
3
4
5
6
7
8
Millions
MarketingInvestment
Good
Investments
13%
Improvable
Investment
58%
Unproductive
Investment
29%
NB. One-year sales ROI can be assumed to be similar to a ROI of three-year NPV net profits
Combination of Geographies, Brands, and Marketing Activities
Marketing RoI
Marketing Investment
!?
Promotions & advertising: accurately
measured but poorly understood

2. The customer journey: Offline
influences Online. Online
influences Offline

3. OutputsInputs Modelling
►Marketing impact for
individual investments
►Marketing mix strategy
►Optimised budget allocation
►Validated data set covering
all investments and key
business outcomes
ECONOMETRICMODEL
National
TV
Time
Display
Sales
Price
Promotion
Search
Competitor Actions
Base Sales
TV GRP Tier 1
Marketing Activity Inputs
Direct Marketing
TV GRP Tier 2
National Press
Search
Competitor Spend
Display
Jan-00 Jan-01 Jan-02
0
5
10
15
20
25
0.0
0.2
0.4
0.6
0.8
1.0
0
5
10
0
10
20
30
40
50
0
0
0
0
0
0.0
0.5
1.0
1.5
0.0
0.5
1.0
1.5
Jan-00 Jan-01 Jan-02
0
5
10
15
20
25
0.0
0.2
0.4
0.6
0.8
1.0
0
5
10
0
10
20
30
40
50
0
0
0
0
0
0.0
0.5
1.0
1.5
0.0
0.5
1.0
1.5
Increasing
investment
drives profit
Marketing Investment
SalesandProfit
Sales
Profit
Current
plan
Base Plan
Optimised Investment
IncrementalNetsales
Marketing Investment
$0
$5
$10
$15
$20
$25
$30
$35
$- $2 $4 $6 $8 $10
Display
Search
Determining the correct
attribution to sales

4. Week 1 Week 2 Week 3 Week 4
Search
Display
Response time
Responsedistribution
90%
90%
95%
100%
Use channels in concert.
Example: display produces a
faster response than search
Search has very
low channel loyalty
Paid has
comparatively high
channel loyalty
!