MetaMetrics were commissioned to provide insights that advised how far media could be pushed before diminishing returns were reached.
The issue
Our client wanted to know how much to spend on media advertising over the next 3-5 years to achieve a certain percentage share of traffic. They believed this reflected consumer preference. “How hard can we push media to reach our goal of website traffic?” In addition, they wanted to understand, what they should spend on media relative to their direct competitors for future campaigns, how often, which channels, and when.
Our Econometric Approach
We built bespoke econometric models to analyse three years of data on their TV advertising. The analysis showed that the three TV ad bursts they ran each year were not performing optimally.
The Solution
The data revealed that the client would achieve the best returns by running two TV ad bursts at optimal times of the year instead of three less effective ones.
Our econometric model highlighted that media advertising plays a key role in achieving the traffic share target. However, to maximise success and avoid diminishing returns, we recommended complementing the media strategy with additional approaches. By incorporating tactics such as new product development, they can enhance their efforts and more effectively reach their target.
The Business Outcome
Without using an econometric model, the property client might have over-relied on media spending in future campaigns, potentially leading to inefficient and wasteful investments.
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.
