Does digital display really work? What is its value in the customer’s journey? It’s critical to understand the complex interactions between different media channels and their impact on key business outcomes. The ChannelMix Marketing Impact Model is an ingenious solution that can enlighten your media strategies by revealing correlations that generate the highest return on investment.
Our most recent client analysis gave us an intriguing revelation. Digital display – an avenue where our client historically spent less than 1% of their budget – turned out to generate the highest marginal return on ad spend. However, what might come as a surprise is that our model recommended allocating only 8% of the budget to this channel. Let’s delve into the why.
Understanding the Strategy
The reason for this seemingly counter-intuitive allocation lies in the sophisticated design of the ChannelMix Marketing Impact Model. When the digital display placements ran, the model detected increased rates of targeted business activity. This happened despite other channels seemingly leading the charge, often securing the last click credit.
The model is designed to work within the parameters of historical spend, limiting the maximum allocation it can suggest for a specific channel. In essence, it maintains a cautious approach to drastic budget alterations. So, if a $1,000 investment in digital display yielded promising outcomes, the model may recommend an increase but would stop short of suggesting a leap to $10,000. The suggested 8x increase in budget allocation is a significant step up, yet it’s far from advising a complete budget overhaul. The message is subtle but clear: “This channel needs more emphasis.”
Confirming Hypotheses, Driving Change
For our client, this insight validated a long-held theory that digital display plays a significant role in driving conversions on other channels. This has sparked a renewed dialogue on how best to leverage digital display in their media strategy. It’s an exciting time, as we’re anticipating how their media mix will evolve in light of this revelation.
As these changes take place, we’ll be closely monitoring the Marketing to Sales Pipeline. This will allow us to compare changes in performance and continue to optimize strategies.
So, yes, it’s pretty cool! The ChannelMix Marketing Impact Model is not just a tool for analytics, but a compass that guides decisions and illuminates the path to maximum ROI. Continue to follow our journey as we uncover more insights and inspire more strategic shifts in the world of media marketing.