Media ROI Analysis


Our team uses marketing mix modeling to quantify the relationship between marketing (and non-marketing) factors and how they affect sales.

The Challenge

Our client wanted to understand measure the media ROI and discern the performance of its media spend on offline and online advertising.

To achieve this, it was critical to spot which channel was working better, and measure the synergy between, if any, between the different channels used during the campaign for higher effectiveness and efficiency

The Solution

  • We developed a marketing mix modeling
  • We analyzed the historical sales movements and we estimated statistically the relationship between sales and the different factors driving sales.
  • The model traced well the sales variation and examined the sales decomposition including all the factors that significantly influence the client KPI allowing to quantify the impact of each factor on sales and calculate media ROI.

The Results

  • The conducted marketing mix modeling has shown that TV generated the highest media ROI followed by Digital and  Radio.
  • There was also a synergic effect of 5%, resulting in higher efficiency when combining these two media channels
  • We conducted Media budget optimization resulting in an increase in TV and Radio budget at the expense of the other channels which led to a 15% improvement in the performance of the same media budget.