MetaMetrics was commissioned to provide insights to a major automotive manufacturer.
The issue
Our client asked us if they should prioritise their advertising budget on a particular vehicle in their offering or spread the money across all vehicles in their range to ensure consistent visibility. “Should we prioritise one car in our advertising or spread the advertising across all our cars?” The client wanted to use previous data insights to make a key decision about a substantial advertising campaign they were planning to launch.
Our Econometric Approach
From the get-go, we suspected that the *halo effect would be substantial for this client. We built 21 econometrics models that correlated the data for a range of vehicles they manufactured against 3 key performance indicators (KPI’s). These included: the number of leads, enquiries and orders placed over a three-year period.
*What’s a halo effect? The halo effect in marketing occurs when positive traits associated with a brand or product influence our overall perception of it.
The Solution
Our econometric models demonstrated to the client that multiple halo effects were happening across the brand. If the most basic model was advertised, it was apparent that there was no upward halo at all, thus demonstrating its limitations.
The models did, however, have a strong upward halo effect when the advertising focused on one of their premium cars. The graph to the left demonstrates the effect that by advertising one of their more aspirational cars, there was almost the same number of orders placed for the basic model as there were when advertising for the basic model alone.
We were able to show the halo effect between all the models and our clients could confidently decide which car they should prioritise their future media campaigns on.
The Business Outcome
These discoveries enabled the senior management and marketing team to make confident decisions for the next campaign based on their own historical data. Without this information, they wouldn’t have had the data insights and may have unintentionally focused their efforts and budget on an ineffective campaign.
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.
