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Why does the allocation of marketing budget a dilemma for any CMO? Why does it stress them so much?
Here are few challenges that the marketers are currently facing:
(Source: Gartner CMO Spend Survey 2015-16) Not only do they struggle with the budget allocation but they also have a whole mountain of real world constraints for budget optimization:
As much as allocating budget is a challenge, optimizing the same while solving for real world constraints makes it more complex. So what’s the breakthrough? An Attribution Model can provide a helping hand in the complex situation of multiple campaigns or other marketing activities to the CMOs. The attribution model helps in identifying the activities with high ROI which enables optimal allocation of marketing budget. It is developed using the historical sales data for the past campaigns. Attribution quantifies the influence of each advertisement impression on a consumer’s decision to make a purchase decision
The ROIs calculated from the attribution modelling can be applied to optimize budget when solving for different objectives with different constraints:
A vacation ownership company was burning cash and fast, in an effort to maximize its reach in India through TV ads, newspaper ads, lucky draws, banners, social media ads, you name it they were trying it. It’s ROI on these campaigns was close to nothing. With Attribution modelling, they were able to identify campaigns with higher ROI at specific customer segment levels. While social media ads worked well with the digital savvy audience driving 30% lift in membership, lucky draws and newspaper ads helped maximize reach amongst non-tech native business and trader community further increasing the membership by 15% in two quarters. The attribution model not only helped in targeting audience in the most effective manner but also increased marketing budget ROI without any additional spend.
Am I spending enough on Marketing? Am I spending a lot?
Are my campaigns working? Are they getting in extra sales?
Well, if such questions are haunting you, marketing attribution might provide you the answer you seek!
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