Background
A global FMCG company wanted to understand to what extent advertising was driving sales of multiple brands in a range of markets over the short and long term. In particular, they wanted to know the contribution and ROI of each channel they were using so they could optimize media spend. Gaining these insights was key amid a rising cost base that was translating into increased prices for consumers, the growth of private label competition, and macroeconomic volatility.
Solution
We developed a comprehensive two-year marketing mix modelling (MMM) program to measure the effectiveness of five brands in three markets. The program covered all above-the-line media, including retail media. All the models featured unobserved component modelling – our unique analytical approach that enables brands to measure the long-term impact of advertising (and other drivers) on business KPIs. Actionable insights were delivered at different cadences, depending on the needs of the individual brands.
Results
increase in incremental sales