1. 1. HARVARD BUSINESS REVIEW ARTICLE ADVERTISING ANALYTICS 2.0
2. 2. EVERYTHING IS INTER- CONNECTED View a tv spot- google search- reads on websites- watches youtube ads- sees a billboard not noticed before- receives a direct mail
3. 3. PAST PICTURE- FUZZY MIXED MEDIA MODELING A LOW HANGING FRUIT THAT WILL NOT HELP ANYMORE
4. 4. REDUNDANT TECHINIQUES TIME-HONORED MEASUREMENT TECHNIQUES 1. CONSUMER SURVEYS 2. FOCUS GROUPS 3. LAST-CLICK ATTRIBUTION SWIM-LANE MEASUREMENT DIFFERENT TEAMS USING DIFFERENT METHODS OF MEASUREMENT AND COMPETING FOR SAME RESOURCES
5. 5. DATA DELUGE 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 isirrelevant noise. So unless you have good techniques for filtering and processing the information, youre going to get into trouble.
6. 6. HOW TO INTERPRET THE DATA Using pioneering mathematical models to quantify cross-media and cross-channel effects of marketing, as well as direct and indirect effects of all business drivers, and the software employs cloud-computing and big- data capabilities
7. 7. THE MOVE TO 2.0 A 3 STEP APPROACH
8. 8. 1. ATTRIBUTION To determine how your advertising activities interact to drive purchases, start by gathering data.
9. 9. FOCUS ON THE SIGNAL, NOT THE NOISE
10. 10. WHAT IS NEEDED ? To accurately model their businesses, companies must collect data across five broad categories: market conditions competitive activities marketing actions, consumer response business outcomes
11. 11. ASSIST RATE IDENTIFICATION With detailed data that parse product sales and advertising metrics by medium and location, sophisticated analytics can reveal the impact of marketing activities across swim. We call these indirect effects assist rates. THIS HELPS IN OVERCOMING SWIMLANE MEASUREMENT
12. 12. 2. OPTIMISATION
13. 13. WAR GAMING Once a marketer has quantified the relative contribution of each component of its marketing activities and the influence of important exogenous factors, war gaming is the next step
14. 14. WHAT IS IT? It involves using predictive-analytics tools to run scenarios for business planning. Maybe you want to know what will happen to your revenue if you cut outdoor display advertising for a certain product line by 10% in San Diegoor if you shift 15% of your product-related TV ad spending to online search and display.
15. 15. USING ELASTICITIES Knowing the elasticities of your business drivers helps you predict how specific changes you make will influence particular outcomes. If your TV ads elasticity in relation to sales is .03, for example, doubling your TV ad budget will yield a 3% lift in sales, when all other variables remain constant.
16. 16. 3. ALLOCATION Allocation involves putting the results of your attribution and war-gaming efforts into the market, measuring outcomes, validating models (that is, running in-market experiments to confirm the findings of an analysis), and making course corrections.
17. 17. MORE SPONTANEOUS Marketers can now readily adjust or allocate advertising in different markets on a monthly, weekly, or daily basisand, online, even from one fraction of a second to the next.
18. 18. HOW TO GO ABOUT 2.0 A 5 STEP IMPLEMENTATION FOR SMALL COMPANIES
19. 19. 1. First, embrace analytics 2.0 as an organization- wide effort that must be championed by a C-level executive sponsor.
20. 20. 2 Second, assign an analytics-minded director or manager to become the point person for the effort
21. 21. 3 Third, armed with a prioritized list of questions you seek to answer, conduct an inventory of data throughout the organization
22. 22. 4 Fourth, start small with proofs of concept involving a particular line of business, geography, or product group. Build limited-scope models that aim to achieve early wins.
23. 23. 5 Fifth, test aggressively and feed the results back into the model
24. 24. THANK YOU Created by Parul Chauhan, LSR Delhi,during an internship by prof. Sameer Mathur, IIM Lucknow www.IIMInternship.com
25. 25. CREDITS http://www.backdoorsurvival.com/wp- content/uploads/2014/08/oldfashioned.jpg https://simonjharris.files.wordpress.com/2014/01/i ot1.png?w=800 http://tech.co/wp- content/uploads/2013/07/TooMuchSignalMarketin gNoise.jpg http://m.c.lnkd.licdn.com/mpr/mpr/p/1/005/072/19 c/12e276a.jpg