Marketing mix modelling (econometrics) consultancy

Maximise the ROI from your digital, media and content investments

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Dan Rimmer

Dan is a respected econometrician and analytics leader with more than 18 years of experience.

 

Dan spent the first 7 years of his career at Gain Theory (ohal), one of the most established and biggest marketing mix modelling agencies globally.  Whilst there, he led projects for some of the world’s best known brands in FMCG/CPG, Retail, Telecoms and Leisure.  This was followed by 10 years at Kellogg’s, where Dan was Director of Marketing Effectiveness and Business Analytics for Europe, Middle East and Russia.

What is Marketing Mix Modelling (MMM)?

 

Marketing mix modelling (also known as MMM or econometrics) are a set of statistical analysis techniques applied to marketing or sales data to estimate the impact of various marketing activities on sales. It will be often used to optimise the advertising mix and promotional tactics to increase ROI or incremental revenue.

 

The benefits should be weighed against the costs but the fact of the matter is that in our experience many brands are missing out on a significant opportunity to maximise their ROI and incremental turnover by not conducting MMM.

 

At the end of the day MMM is a model and the outputs are only as good as the inputs. We can work with you and your MMM supplier to ensure that they measure all media correctly to give you as clear a picture as possible on how to optimise your spend.

 

“But you can’t measure the ROI of digital via marketing mix modelling (econometrics)”

 

A common misconception we come across is that you can’t measure the ROI of various digital channels via MMM. We’ve come across many big brands in various sectors that have believed this.

 

It is true you need a certain dataset size to have a high level of statistical significance but more often than not when you hear the above statement the data either will not be being collected in line with best practice or measured correctly.

 

To attribute digital marketing sales optimally you should consider digital attribution modelling. Learn how we can develop the model right for your organisation here.

 

Marketing mix modelling services

 

We can provide you with consultancy by working with your internal or MMM supplier to build advanced econometric models in order to disaggregate and quantify all key drivers of historic sales including:

 

  • “ATL Advertising”– TV, VOD, OOH, Press, Radio, Cinema, Digital (Online Video, Display, Programmatic, Mobile, Search SEM / SEO, Social, Influencers) and PR.
  • BTL Advertising– Coupons, Sampling, Door Drops, In-Store Media, Direct Marketing (Mails/Emails), Affiliates and On / In Pack Promotions.
  • In-Store Promotions– Promotional Mechanics/Offers, Special Packs and On / Off Shelf Display Support.
  • Pricing– own price, competitor price, price relative to competitors and crossing of price thresholds.
  • Distribution– changes in breadth and depth of distribution, facings, shelf position, new product launches and de-listings.
  • Other non-controllable factors– competition, category trends, seasonality, holidays, weather, economy, national events and out of stocks.

 

Econometric model outputs provide clients with huge benefits including:

 

  • Detailed understanding of key drivers of business performance to date and the relative contribution of each one.
  • Sales uplifts and return on investment metrics for each individual marketing and sales investment lever.
  • Price and promotional elasticities.
  • Quantification of the inter-dependencies between investment levers, for example:
    • Does TV advertising drive online search
    • What is the optimal mix of media channels
    • Is there a synergistic effect when synchronising TV with in-store promotions

Contact us to find out more. However, before you do so hear from some of our clients. We can provide more references on request.

  • "The Entropy team are a pleasure to work with, their experience and insight is always valuable and they have a great passion for the work they do." Fiona Spooner, Global Marketing Director, Financial Times

  • "GDPR is a tough subject to understand but Entropy’s full day workshop was informative and made clear what was expected of us in order to be compliant. The scenarios really helped us to apply GDPR to our own situation and business. I would recommend Entropy to any company that’s looking to gain not only a broader understanding of GDPR, but its implications for their business.” Holly Hall, Managing Director, BIMA (British Interactive Media Association)

  • “Alex Tait has been very involved with ISBA on a variety of issues at the forefront of our agenda over the years, most recently as an advisor and previously as chair our Digital Action Group and valued member of our Executive Committee.” Phil Smith, Director General, ISBA – The Voice of British Advertisers

  • “Entropy have provided very effective and hands-on support. You have been a fantastic addition to the team in the past few months and brought invaluable media expertise. It has been a pleasure working with you. A big thanks from all of us.” Emmanuelle Grimbert, Marketing Director, Danone

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