Marketing Mix Optimizer
Media consumption habits are fragmenting and the consumers path-to-purchase is becoming increasingly complex, involving multiple touchpoints on the...
Maximize the return on your marketing investment
GfK Marketing Mix Optimizer
Are you making the right investment choices to maximize your marketing ROI?
Optimize your investments and drive measurable sales results
Engaging your target consumers is harder than ever before
Media consumption habits are fragmenting and the consumers path-to-purchase is becoming increasingly complex, involving multiple touchpoints on the route to successful conversion.
To add further complexity, the entire digital ecosystem is changing. Data privacy is becoming a growing concern and the removal of third party cookies further tightens your ability to track and measure engagement.
These changes have a major impact on where, when and how best to now reach and engage with your desired audience and maximize your marketing ROI. And what worked well before may well have changed in this new era of consumer behaviour.
However, cutting through the noise and building strong brand associations with your audience remains just as important as ever before. Arguably even more so during these times of uncertainty and unparalleled change.
In this challenging environ-ment, marketers cite measuring marketing ROI as a top priority and require measurement solutions that can deliver.
According to GfK's Branding and Marketing in the New Abnormal, over 80% of marketers run some form of marketing measurement and approximately 60% rank maximizing ROI as their top priority. However, despite its importance, many marketers measure the impact of their marketing with metrics that have no clear link to sales and other key business KPIs. Less than a third of client-side marketers have programmes in place that accurately measure the impact of marketing investment (WARC, April 2020).
Furthermore, marketers believe they waste an average of 26% of their budgets on ineffective channels and strategies.
To succeed in today’s environment, you need measurement approaches that capture your investments across all your marketing channels, and accurately quantify all drivers of your brand sales both online and offline.
Marketers believe they waste an average of 26% of their budgets on ineffective channels and strategies
Do you know the impact of your marketing investment on your business outcomes and how to maximise the impact of your investments in this new era of consumers?
It is important to have a measurement strategy in place that overcomes the ever-evolving and challenging landscape and to work with partners that have access to robust data and expertise.
Using advanced measure-ment techniques and proprietary data sets, GfK Marketing Mix Optimizer can unlock powerful insights to ensure you invest at the right level, on the right channels, with the right campaign to reach and engage with the right people.
It helps you answer your most pressing key business questions:
- Is my marketing contributing to sales and delivering a positive ROI?
- How much and where should I invest in delivering against my business and marketing goals?
- How can I deliver a greater impact and ROI from my marketing investments?
We at GfK partner with clients to deliver these insights, read on to find out more.
Your marketing mix, optimized for today’s consumers
GfK's Marketing Mix Optimizer helps you unlock insights and secure future growth
Insights to craft marketing plans with
GfK Marketing Mix Optimizer (MMO) integrates your media and promotion information with GfK's Market Intelligence: Sales Tracking data alongside multiple other data sets and applies advanced measurement techniques to isolate and quantify the drivers of your brand sales.
Our approach is granular, allowing you to most accurately control for local execution differences and deliver robust insights at channel and campaign level.
These unique insights combined with our data science consultancy and category expertise provides you with clear and actionable recommendations to maximize your marketing ROI and drive sales.
GfK Marketing Mix Optimizer recommendations have provided opportunities to improve marketing ROI by up to 4x
Quantify your investments
Our primary objective is to help you to understand if your investment in media and promotion increases sales. We’ll help you to isolate and quantify all drivers of your brand sales including competitive and seasonal changes to explain changes and support future planning decisions so that you can understand:
What are the key drivers of your brand sales over time?
What contribution does marketing and sales activity make to your brand sales?
Which channels are most effective at driving sales?
What is the impact of competitor actions on your brand sales?
Increase your ROI
Marketing Mix Optimizer shows if your investments yield a superior return on investment (ROI).
You can identify which media channels deliver the highest sales and best ROI, evaluate the impact of online vs offline media investments and determine which channel combinations work best to measure:
What is the effectiveness and ROI of different marketing activities?
Are there synergistic effects to multi-channel investments?
Is there a point after which it no longer makes sense to increase investment on a particular media channel?
Run simulations to further optimize your marketing mix
GfK Marketing Mix Optimizer can also guide future planning decisions by simulating the impact of different marketing investments and identifying where to allocate your media budget to achieve sales targets and maximize your ROI.
How should you allocate your media budget to different media activities going forward to achieve your target sales and maximize your ROI?
What will be the sales and ROI impact of your planned media budget?
What impact will changes in your budget have on sales and ROI?
Retrieve insights and run simulations on the fly
In one, simple-to-use dashboard, GfK Marketing Mix Optimizer allows you to view the historical drivers of sales and slice and dice the insights to answer any questions that may arise. Our optimizer solution guides future decisions by simulating various marketing spend scenarios to quantify the sales and ROI impact of your planned investment choices.
Furthermore, it can support ongoing decision making, calculating the sales impact of shifts in your budgets and providing guidance on how to further optimise when these changes occur.
Granular data fuels rich insights and robust predictions
GfK Marketing Mix Optimizer is fuelled by our proprietary store level data*, the richest and most robust point of sales network in the tech & durables industry.
Our data accurately captures what customer have purchased at a store level and is matched to the most granular digital media data and promotional in-store activities to accurately measure individual channels, campaigns and sub-regional level activities.
This proprietary data is modelled alongside all other above and below the line metrics impacting sales including competitor and seasonal factors.
GfK Consumer Brand Framework Intelligence metrics can also be incorporated into our models to measure the marketing impact on your brand health metrics.
In summary, GfK's MMO combines all factors that could impact your marketing activities for a complete understanding of what worked, what didn't, and how you can best optimize future investments and can guide strategic portfolio decisions.
Our global footprint of marketing science, brand and category experts across more than 75 countries are also on hand to support. Working closely with your key business stakeholders and media agencies to unveil unparalleled insights and plan actionable recommendations to maximize marketing ROI.
Trusted by global leading brands
Publishers and advertisers turn to GfK to measure and optimize marketing ROI
A deeper look:
Insights into the smartphone market
GfK developed a whitepaper in conjunction with Facebook to help marketers embrace a new era in reaching and engaging consumers; including how to utilize marketing mix modeling to optimize marketing effectiveness.
GfK Market Intelligence: Sales Tracking data shows that global smartphone sales have bottomed out and are steadily recovering since April 2020. This provides an opportunity for manufacturers to capitalize on recovering demand through marketing tactics and optimization of the investment mix and execution.
GfK’s Marketing Mix Modeling norms show that media and promotional activities are vital to drive sales. Around 14 percent of sales is driven by the direct effects of the brand’s marketing mix. GfK’s Marketing Mix Modeling norms also highlight the efficiency of individual media drivers, with digital channels outperforming the ROI of traditional media. Optimizing for a digital age is therefore critical in the new era that we live in.
As we are stepping into a very different world, all marketers need to rethink their marketing strategy to reach consumers more effectively, be where consumers are, and meet what consumers need.
-Bryan Wang, Director, Marketing Science, Greater China & APAC, Gaming, Facebook
GfK’s Marketing Mix Modeling norms are an aggregation of studies into the effectiveness of the entire marketing mix deployed by our clients.
Large amounts of marketing investments continue to be invested into traditional media but the efficiency of digital has been driving the diversion of media investments away from traditional
- Digital media ROI is over 4x better than traditional media
- Digital media ROI is being led by social media which is 10x better than traditional media.
A deeper look:
Lenovo and LG India see how digital investments drive ROI
This media mix modeling study by GfK has really helped us get closer to an efficient and optimal media mix. While LG has been a proponent of digital marketing, the fact that digital media drives significantly higher sales impact and ROI than other media is a key business and marketing insight for us that will shape our media planning going forward.
- LG India
Google worked with GfK to analyze the marketing mix effectiveness of two key advertisers in India – LG and Lenovo.
India is already a large market for advertisers and highly strategic given its growth potential. It is therefore imperative to measure and optimize marketing effectiveness to help advertisers take advantage of this huge opportunity.
India had recently undergone significant changes in the market given the introduction of GST and demonetization. However Gfk were able to successfully account for these external factors and accurately quantify marketing effects.
This study helped us develop a stronger understanding of our media investments, and I am sure that the learning will aid our team and agencies in driving better optimization and ROI.
- Lenovo India and South Asia
GfK's Marketing Mix Optimizer shows that digital advertising is key to driving incremental sales of electronics in India.
Of all incremental sales driven by media and promotions, digital contributed to:
70% of Lenovo notebook incremental sales driven by digital promo
40% of LGs panel TV incremental sales driven by digital promo
1 out of 5 LG panel TV incremental sales attributed to YouTube ads