Marketing is an investment to reach people about the brand/product/service. Its success is usually measured through awareness/sales. As the rule goes, investment always comes with a risk. Digital/Traditional/Promotional marketing data and tools that look at just a snapshot in time for a single channel alone are critically inadequate. Analytics, on the contrary, considers all marketing efforts across all channels over a span of time, which is essential for sound decision making. This function of analytics in marketing ensures that risk of investment is under control of the marketer by making them to look at a bigger picture. In simple terms marketing analytics is measuring, managing, analyzing and optimizing the marketing inputs.
It is shocking to see that most of the organizations tend to ignore the concept and importance of marketing analytics. It is surely a great way to obtain clarity, as to how the marketing efforts are deriving revenue. Marketers now a days have so many analytical options at their disposal that they often become paralyzed, defaulting to just one tool. But an integrated marketing-analytics approach is the key to drive growth.
The marketing mix is the combination of marketing initiatives collectively chosen as a strategy by the marketer in the process of achieving greater success. The mix comprises traditional, digital, promotional and other marketing ideas. Arriving at the best mix is an easy task when we use appropriate analytical approach to evaluate their effect on measure of success in the past and recent times. This process (usually referred as MMM – Market Mix Modelling) ensures marketer to know the contributions, elasticity and ROI of each marketing medium and hence help them to optimize their budget.
Analysts use the word mimic, referring to market mix models as they exactly mimic the market place with the data they have in hand. Market mix modelling is state of art model that exhibits the relationship between the marketing inputs and the KPI of interest, this model has to be updated along the new data (upcoming marketing inputs). Updating the model explains the drift in the behavior of the marketing inputs before and after complete analysis, hence ensuring the working of the optimized marketing strategy.
Web analytics is a small, yet integral part of digital marketing analytics. While Web analytics measures aspects like Search engine optimization, ad-words selection, bounce rate etc., digital marketing analytics also measures business metrics like traffic, leads and sales. Transformation of these numbers into actionable insights helps in landing new customers and generate revenue.
Digital world has given enough space for marketers to reach customers and vice versa. A marketer should also care about the people who are in need of a particular product/service at the same time when they focus on marketing to attract customers. According to HubSpot's 2018 State of Inbound report, 42% of marketers cited "proving the ROI of our marketing activities" as one of the biggest challenges they face within their company. The biggest advantage of digital marketing is that we can attribute the leads to its source, which ensures precise understanding of the effectiveness of each medium. With the development in technology, the customer’s activity can be followed throughout, right from when they click an ad, to how long they spend on a web page and especially why and when they have bounced off from it. This analysis is called multi-touch attribution. Segmentation and re-targeting is a must use technique to convert the bounced users. Impressions and conversions are just numbers to any marketer, unless an analyst reads between and exactly explain their contribution to the business.
Even with digital evolution, traditional marketing mediums hasn’t lost its capability to reach people. It is hard to forget few certain ads like Vodafone, Lifebuoy etc. That is the power of traditional marketing medium. Playing an ad involves consideration of multiple aspects. It includes choosing creative/promotion to be deployed, platform where the ad is to be displayed and its time/day slot. What if we can optimize our marketing strategy at this level? Does it not sound perfect? These granular aspects are analyzed with the help of media deep dives analysis. With the help of this process, the working of different creatives/genre/promotions of ads and effectiveness of the ad timing can all be identified.
Generally, these marketing strategies won’t have a linear relation with the key performance indicator. Even if any marketer wants to proceed with an analytical approach they would never think about this aspect. The art of relating these metrics to KPI of interest forms the heart of an marketing analyst’s job.
Brands say they plan to increase spending on marketing analytics by between 75 and 100 percent, says a study by VentureBeat.
Here is the summary of the topics which we are experts at enforcing with analytics that will ease the work load of any marketer:
- Market Mix Modeling
- Sales / Market share driver analysis
- ROI analysis
- Response curves
- Media deep dives: campaign and genre analysis
- Budget Optimization
- Price elasticity analysis
- SKU analysis
- Market simulator
- Mind Measure Driver Analysis
- Brand awareness analysis
- Paid, Owned, Earned, Media (POEM) Models
- Direct and Indirect effect of media on Sales
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