I’ve been working on marketing ROI for a long time now. We’ve delivered Marketing Mix Models, Agent Based Models and many other analyses to help marketers make better strategic and tactical marketing decisions.
One of the concepts that I’ve found to be very descriptive is Last Touch Attribution. Last Touch Attribution assigns all the weight of a marketing activity to one response. It ignores all prior, concurrent and long term values generated by a particular media activity. Similarly, Marketing Mix Models generally ignore the long term value of marketing and advertising. They correlate marketing activities through a regression model to the sales volume from a particular time period, usually a week. But as a rule they don’t include the long term values that these marketing activities deliver.
The long term marketing value generated by any and all marketing activities fall into a few categories:
· Increased awareness and purchase intent
· Changes in the brand attribute profile (imagery)
· Customer equity (the value of any new customer converted to the brand)
Last touch Attribution and Marketing Mix Models are great tools to support marketing in their ability to make better strategic and tactical decisions, but they don’t tell the full story.
This white paper was put together to describe in detail how a new approach is needed to understand how marketing messages drive awareness and purchase intent and that these values accumulate amongst the consumers. As marketing messages are inserted into the category awareness and purchase intent accumulate. If messages stop they decay. If messages begin again they start to accumulate again.
This concept is especially important when we start to add social media marketing to the mix. With social marketing we need to now compare the value a comment on Facebook or a video viewed on YouTube might have on the brand. Cumulative Engagement Modeling is a great step in accurately determining how these messages drive incremental awareness and purchase intent for those social media active individuals.
I hope you find the white paper interesting. Please let me know your comments and feedback.
http://www.Marketing-Calculator.com/DownloadNow.aspx
Thanks
Guy
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