Managing long-term marketing impact and roi
The temptation of immediate ROI at the expense of enduring market share has seen an over-correction in the balance between long-term brand building and short-term activation strategies.
It doesn’t matter if you’re closing this year’s Gap or want to build a solid brand for 2024. If you don’t understand how media impacts your business, you may be wasting a significant portion of your marketing investments.
Marketing Mix Modeling (MMM): MMM is a valuable tool for most companies to assess the impact of their marketing efforts and accurately forecast future sales. It allows businesses to understand the effectiveness of each media channel, contributing to both short-term revenue and long-term brand reputation and growth.
Measuring ROI: Many businesses shy away from long-term strategies because they are harder to measure. Applying MMM with a nested model approach can help companies evaluate the full impact and provide insights into both short-term and long-term ROI for each media channel.
Key Focus of Campaigns: You need to align your campaign objectives with measurable outcomes, whether related to short-term sales key performance indicators (KPIs) or long-term brand building. If a campaign doesn't impact KPIs, what is the rationale behind the investment?
Role of Media Channels: In contrast to traditional advertising, we have become accustomed to analyzing clicks and interactions. However, in many studies, done by Predictify, offline media have a particularly strong effect on Consideration and Brand Awareness and should not be forgotten in the digital era.
Media and marketing investments have a larger return when evaluating performance beyond short-term digital response, which many CMOs overlook when they discuss marketing impact with their c-level management colleagues.
At Predictify we want to help businesses make decisions based on thorough documentation from all phases of the customer journey. Please contact Pontus Norberg, Jesper Dam Nielsen, Tommi Grønkjær Christiansen , and Kristian Vejborg at Predictify Consulting to find out how we can help you manage all advertising dynamics and total marketing impact.
