I just read this article (http://bit.ly/12HDmOt) and I guess there are a few things that come to mind as a response:
1) Key concerns:
A) “models underestimate the impact of advertising, particularly of broad-reach network TV; overstate the value of price promotion, mislead marketers into buying thinly rated programming; wrongly downplay risks of going dark for weeks on end; and fail to account for how online search has made all advertising more effective.”
- I’ve always wondered about a model’s ability to determine the short term v. long term impact and this is especially the case with billboards that are difficult to measure impact using statistics.
- I’ve not done any specific research but over-stating the value of price promotions is probably true, because they are so distinct in their impact
- As far as I know high or low rated programming shouldn’t have an effect on MMM accuracy. I could imagine that if you are a major network, you want to keep advertising on your channels and not on the smaller, probably more targeted channels.
- Going dark is always an issue, but if the budget isn’t large enough to be ‘light’ every week, then when money is spent it should be spent optimally.
- On-line search, digital in general and social have special requirements. I think the industry has figured this out.
- Outside validation of a model -I’ve seen some bad models definitely delivering bad recommendations, but this happens in any industry. Most modelers are very good at what they do and deliver fantastic results based on the available data. Maybe there would be some value in developing industry standards. If anyone is interested in something like this, let me know.
2) The question is, can marketers make better decisions without the models? Here I must say the answer is unequivocally NO!
3) Are Marketing Mix Models (based on statistics) valuable? Yes, absolutely.
4) Are there better solutions? Yes (IMHO). For many clients, especially CPG, agent-based modeling & simulation (http://www.ProRelevant.com) is the next frontier in modeling and it is now moving strongly forward.
Marketing ROI has many facets. Some are long-term brand equity related. Some are short term in nature.
This will be the first in a series of presentations we will provide to help marketers understand the key issues in improving their marketing strategies and tactics to driving growing revenue, profit, brand and share. This series will cover 6 key elements of brand equity. These are:
We’ve found these brand equity dimensions to be critical in optimizing the go-to-market strategy for brands and they are built into the ProRelevant MarketSim Agent-based modeling and simulation software.
It’s always interesting to learn from your peers (and consumers) – how novel . We are in the process of launching a new marketing ROI training and analytics service and wanted to understand the key issues around the key issues driving or hindering marketing success.
The attachment provides some interesting insights and answers. I would love to get your feedback.
Look forward to hearing from you.
Simply enter your email and name and the download link will appear.
Download ProRelevant MarketSim Strategic Overview
(After you’ve entered your correct information, you will provided with a direct link to the download link. For questions contact us at Marketing@Marketing-Calculator.com.)
Hope 2013 is treating you all well. We’re putting together a new marketing service and thought I would ask if you could participate in a short survey on marketing leadership. It will only take a few minutes, but will provide some valuable new insights on a new service we are putting together.
Nothing better than to sit in a 5-star restaurant and enjoy a great bottle of wine and a fantastic Tuscan steak, while talking marketing.
Jerry Dimos, my co-author on ROI of Social Media and I did just that in his new Bistecca Tuscan Steakhouse (http://www.bistecca.com.sg). If you’re ever in Singapore, check it out. Here are a few pictures from our meal:
I thought I would let you know, I will be facilitating a workshop on marketing accountability and ROI in Holland on Nov 27 and 29. My partner, Michiel van de Watering, who has just published a new book, Marketing Kassa, (in Dutch) will be the co-presenter.
Definitely looking forward to it. If you’re able to join us, that would be great.