Maximizing ROI with Strategic Media Allocation for Multi-Channel Advertising

The Challenge

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Our client, a prominent consumer packaged goods company, faced ongoing debates on media allocation between various channels like digital performance marketing, social media advertising, TV, and print. Each department had valid arguments supported by historical data, making it essential to develop a data-driven approach that could optimize the allocation of their advertising budget across different platforms and marketing funnel stages.

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The Approach

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Rather than relying solely on past data, we adopted a forward-looking strategy. Setting up a comprehensive 15-week experiment, we tested different combinations of upper funnel paid social media advertising, performance marketing, TV, and print across various geographical markets. We included control groups in each experiment, allowing us to compare the effectiveness of different media channels. From this data, we constructed a predictive analytics model that provided insights into the optimal media allocation for each geography and throughout the funnel stages: awareness, consideration, purchase, advocacy, and loyalty.

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The Result

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The new media allocation model transformed the company's approach to advertising investment. It addressed the unique dynamics of each channel's impact across different regions and stages of the marketing funnel. For example, in some markets paid social media had minimal effect, while for others, it proved to be a key driver of advertising success. By refining the allocation of upper, middle, and lower funnel advertising budgets across channels, the company achieved a substantial increase in ROI, ranging from 1.1 to 4.7, and a boost in Return on Ad Spend (ROAS), ranging from 6 to 22.5.