MetaMetrics was commissioned to provide insights about media effectiveness and optimise future investment for the best possible impact.
The issue
The client approached us with a fundamental question, focusing on the effectiveness of their media performance. With a significant reduction in their media budget, they were keen to understand the implications on their overall revenue and sales performance. They asked, “Can you tell us how much our reduced media spend is impacting overall revenue?” This question was at the heart of their marketing strategy, as they needed clear insights to make informed decisions about future media investments and to optimise their budget allocation for maximum impact.
Our Econometric Approach
After a consultation period and a robust data gathering process, we built bespoke econometric models that analysed a wide range of metrics over three years and focused on three core KPIs at different stages of the funnel. We examined data such as: weekly unique visitors, weekly new customers, and weekly revenue then analysed this data against their media drivers. The models could clearly distinguish between customers driven by media and those who were not and provided unique insight into which channels were most effective.
The Solution
Our econometric models demonstrated that the decreased media spend had led to a decline in total sales because they had applied the same media strategy with a lower budget. By doing so, they hadn’t reached the efficient weekly levels* required for any of the media channels.
The models identified that there were opportunities to boost media performance by:
- Concentrating media in fewer channels to reach efficient weekly weights.
- Optimising deployment and creative, especially for scale media (TV), to improve performance.
- Tilting the overall channel mix towards higher-performing media, other things being equal.
* What does ‘efficient weekly levels’ mean? It’s about finding the balance where marketing activities achieve the highest possible results relative to the resources invested.
The Business Outcome
The econometric model demonstrated that if the client continued to reduce investment in brand channels such as TV and BVOD they would have seen a reduction in their total business. Optimising the reduced budget on both brand and performance media was required for the business to continue to grow.
At MetaMetrics, we collaborate closely with our clients to enhance their marketing effectiveness. By leveraging their data, we provide our clients and their teams with the confidence to ensure all campaigns are impactful and efficient.
