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THE FUTURE OF MARKETING ROI

Digiday PresentationThursday, April 20, 2017

JOSH KOWALSVP, Nielsen Marketing ROI

Consulting Services

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OVER 40% OF MARKETING SPEND IS TYPICALLY WASTED

How confident are you that your

marketing ROI is being accurately

measured to eliminate this waste?

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3 KEY PROBLEMS WITH ATTRIBUTION IN DIGITAL AGE

NO BASE SALES1

INCOMPLETE DATA

2TARGETING/

SELECTION BIAS

3

How certain are you that you’re using the most accurate methodology to measure your marketing tactics?

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• Household-Level Regression• Store-Level Regression• Household-Level Predictive Score Matching • Household-Level Machine Learning

NEXT-GENERATION ANALYTICSDigital Media Consortium (DMC) II looked at various statistical methodologies with different data limitations to see how they can work together to get the most accurate ROI

DMC II PARTICIPANTS

METHODOLOGIES TESTED:

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A HOME RUN FOR INTEGRATED MARKETING ROINielsen’s proprietary process used to synthesize MTA and MMM results

STRATEGIC PLANNING

VIA NIELSEN MARKETING

PLANNER

MTA OPTIMIZATION

FORNEAR-TERM

TACTICAL PLANNING

CONDUCT MULTI-TOUCH ATTRIBUTION (MTA)

CONDUCT MARKETING

MIX MODEL (MMM)

Cookie-level KPIs

Predictive analytics for

segmentation

Activation via marketing ROI

segments

Use MTA digital media effectiveness as a prior in MMM

model

Calibrate MTA with MMM model via

Nielsen Intelligent Priors™

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3 KEY TAKEAWAYS

There is no single model/methodology that will accurately answer all of your questions given the poor quality of today's data

Using the methodologies that is appropriate for you and your data will prevent you from making the wrong decisions

When using a system of models, they need to be closely and scientifically integrated to ensure an accurate "one truth"

Copyright © 2017 The Nielsen Company. Confidential and proprietary.