Marketing Mix Modeling
SEE WHAT’S DRIVING YOUR SALES AND WHERE TO SPEND YOUR MARKETING DOLLARS
As a modern marketer, you’re leveraging a wider array of channels and tactics to reach your customers than ever before. The question is, how do you know which activities are actually driving revenue and profit, and where you should be spending to maximize impact? With Nielsen’s Marketing Mix Modeling solution, you can assess the impact of your investments, see what’s working and optimize your marketing and spend accordingly.
Measure the Impact of Your Marketing on Sales
Our Marketing Mix Modeling solution provides a holistic understanding of what’s driving sales, including online (e.g., search, display, online video, social), offline (e.g., linear TV, in-store promotions, direct mail) and external factors (e.g., competitor actions, macro market trends) that can affect demand for your products. It looks at the historical relationships between marketing spend and business.
With Nielsen Marketing Mix Modeling, you can:
- Quantify marketing effectiveness of channels in terms of return on investment (ROI), revenue, impact and incremental sales
- Determine how to allocate marketing budgets to achieve maximum ROI
- Unlock potential opportunities and drive profit
Assessing the Incremental Value of Your Online and Offline Investments
With our advanced analytic approach and unmatched access to granular data inputs, you will gain a holistic understanding of what’s driving sales. Our marketing mix models measure the efficiency and ROI for every type of marketing spend across channels, business units, products and markets.
We start by collecting data on marketing spend and sales performance from the advertiser, advertising agencies, partners and proprietary Nielsen data sources. We combine this data to analyze both the media that consumers are exposed to and what they buy, so you can understand the impact of marketing activities on sales at a granular level.
We then build advanced statistical models that connect your marketing spend to business performance. Regression analysis is used to determine how independent variables (marketing tactics) relate to outcomes (sales, profit, etc.) to accurately measure the performance of your marketing mix.
Our consultants analyze the results to reveal the impact of your marketing investments by market, brand, or product, and provide actionable insights to help you achieve your objectives. Since no two markets are the same, we provide both global insights and region-specific recommendations to help you optimize your spending in every corner of the world.
Enabling Smarter Marketing Spend Decisions
With our marketing mix modeling solution, you will be able to understand the descriptive (what happened?), predictive (what if?) and prescriptive (what next?) questions of your marketing activities. Quantify the performance of your channels in terms of ROI, revenue and incremental sales, and leverage insights on marketing conditions to further enhance the decision-making process.
Results are delivered through an online platform, so you can understand in detail how your marketing has performed, and run simulations and optimizations to determine how to spend your dollars most effectively going forward. Leveraging the platform’s extensive reporting and drill-down capabilities, you’ll be able to see how different factors influenced sales and how it changed over time, for any combination of products, geographies or time period. It leverages your marketing mix results to forecast the impact of marketing spend scenarios, uses advanced optimization algorithms that determine optimal spend levels, and enables you to make data-based budget decisions to achieve maximum ROI.