Effective media execution demands complete views of marketing’s impact on sales. Traditional approaches to marketing mix modeling only capture short-term impacts. True marketing ROI also involves its long-term and indirect impacts.
The long-term impact involves three drivers that need to be measured with analytics:
- Improved brand equity strengthening base-line sales. Impact through brand equity framework identifies impacts of marketing on equity. Recommended approach.
- Repeat purchases from shoppers. Long-term lag of media framework measures sales against media lag. Secondary option.
- Willingness to pay by creating premium perception to increase prices. Variance in price elasticity framework captures the change in price-elasticity. Additional analysis.
The indirect impact of paid media accounts for its influence on earned media that drive sales.
Bayesian Networks capture media interactions, revealing how earned media is driven by paid media vehicles.
Cross-media analysis of the direct and indirect impacts reveals the total contribution of media activities, informing effective media execution.