ADVERTISING ANALYTICS 2.0A HAVARD BUSINESS REVIEW ARTICLE

SHUBHAM VERMA

IIT GUWAHATI

For a long time , advertising impact were measured one medium at a time .

But in actual , they interact with each other

TV ad can prompt a Google search on mobile phone , that can lead to a click through on a display ad and ultimately end in sales.

Knowing how different medias interact , companies can have a more effective budget for advertising

Companies can get a rise in sales without spending more .

Objectives of the articleObjectives of the article

• Understanding the importance of Analytics 2.0 in advertisement and marketing .

• Steps in analytics 2.0 and how to implement them .

• Analyse the real life examples to explain the situation

• Understanding some of the principles of marketing .

Early methods of analysing the advertisement impact

1.Media Mix Modelling2.Swim lane measurement

Marketers link scanner data with advertising and decide how to allocate marketing resources.

MEDIA MIX MODELLING

DIGITAL MARKETING

Digital Marketing provided with the ability to monitor every mouse click ,measuring cause and effect relationship between advertising became easier .

Marketers measure the performance of each type of marketing activities as if they work independently of each other .

SWIM LANE MEASUREMENT

Swim lane measurement underestimated social media and overestimated PR and Paid search .

There have been situations in which revenue calculated by marketers is more than actual revenue.

we produce the equivalent of theamount of data that the Library of Congress has in its entire print collection. Most of it is irrelevant noise. So unless you have good techniques for filtering and processing the informationgoing to get into trouble

-Nate Silver , statistician and writer

2.0

or

It quantifies cross media and cross channel effects of marketing , as well as direct and indirect effect of business drivers

Analytics has helped companies get the answers to two very important questions :

1. How did the combination of ad exposures interact to influence the customer to purchase ?

2. Are they investing the right amount at the right point in the customer decision journey to purchase a product ?

3 broad activities involvedin analytics 2.0 :

1.Attribution2.Optimization3.Allocation

1 Attribution

Process of quantifying the contribution of each element of advertising or simply collection of appropriate data .

process. Data should be collected across five categories :

1. Market conditions 2. Competitive activities 3. Marketing actions4. Consumer response 5. Business outcomes

Optimization software

ASSIST RATES

• The indirect impact of one marketing activity on other , is called assist rate .

• An analysis could pick up a click-throughs on an online banner ad after a new TV spot goes live and link that effect to changes in purchase patterns . This would provide a truer picture of ROI on TV ads and search ads.

2 -

Use of predictive analytics tools to run scenarios for business planning . It helps to make better decisions about distribution of revenue towards different projects and hence increasing the sales .

ELASTICITY

• Ratio of percentage change in one variable to percentage change in other variable .

• Knowing elasticity would help to predict the how the specific changes made to different activities would influence particular outcome.

In a war-gaming process , team members define marketing goals such as revenue target , share goal or margin goal and software generates a set market scenarios and recommendation to achieve them.

3 Allocation

Pulling the results of attribution and optimization into market , measuring outcomes , validating models and making course corrections .

Now a days , marketers imply optimization and allocation simultaneously i.e releasing various ads and analysing which had worked better .

5 steps for implementation

1. Embrace analytics as an organization

2. Appoint an analytical minded person to tasks.

3. Conduct an inventory of data through organization

4. Build limited scope models that aim to achieve early wins

5. Aggressive testing and feeding of results.

Some examples from indian context

SOME EXAMPLES FROM INDIAN CONTEXT

Flipkart , one of the biggest e-commerce firm of India advertises through various ads on TV , emails and banner ads .A TV ad of a special sale on the site excites the viewer and an email on his mobile saying that the sale has started would make the person visit the site and hence lead to purchase . A banner ad about the sale and the special offer on site would take the person to the site along with the excitement created by the TV ad . Thus , all the mediums interacted with each other to create a sale on the site.

Analytics has shown that people in different countries have different priorities while buying a product say in case of purchasing a car .

In India people are more concerned about the mileage or the fuel efficiency of the car more than anything else along with being cheap . Different companies advertise through showcasing the fuel efficiency of the car .

Recent patterns have shown that many people buy car as a status symbol which many of the companies are using in their advertisements.

A CASE OF ADVERTISING IN IPL

This IPL season, SportsMechanics is working with Mumbai Indians, Chennai Super Kings and Royal Challengers Bangalore to help increase engagement with fans by serving up analytics and infographics. Mr. Ramakrishnan says ,

The banter in social media starts one hour before a game commences and tapers down well after it is over. A data insert for Chennai Super Kings received 30,000 hits on Facebook in just one hour

Analytics show audience likes a team which connect with them . And hence none of the team forgets this .

Every team has Facebook page for the fans , Youtube channels which have videos from their favourite players during practice or from the IPL parties or just a special message from the team member urging them to support their team . Every Team also has special hashtags which keeps a count for the buzz of their team and thus help them to change their strategy if the buzz is low .

IPL is the most-watched Twenty20 league in the world and the first sporting event to be broadcast live on YouTube.

The brand value of the 2014 Indian Premier League was estimated to be around US $7.2 billion. This

1.Total mentions of IPL 8 season on social media till date is 1,86,569. 88.55% on Twitter.2. Gender distribution 85% Male & 15% Female3. Sentiment: Neutral 89.35%, Positive 9.85%, Negative 0.80%4. Buzz of #IPL8 in last 9 Days on Twitter 69K5. Buzz of #PEPSIIPL in last 30 Days on Twitter 109K6. The official page of IPL on Facebook has increased its fan base by 400K this season7. KKR is the favourite team on Facebook with 11 Million Fans8. IPL official profile has 2.5 million followers on Twitter!9. CSK is the favourite team with 1.4 million followers on Twitter10. 1 Lakh views of IPL 8 opening ceremony promotion video on YouTube!11. 52,778 followers on Instagram12. 1 million followers on Google +

Every company wants to gets associated with IPL , one way or the other . Becoming the title sponsor , associate sponsor , particular match sponsor , getting a place on players jersey or an ad on the big screen , every company is fighting for it because it is the biggest sporting event in the country and one of the best way to advertise and it is the data and which proves the fact .

Yes Bank and zoo ad were the gained a lot by advertising in IPL

Becoming the title sponsor of IPL , Pepsi gained a special liking in the hearts of IPL lovers .They were way ahead of the competitor brands like Coca- Cola and Thumps up among IPL fans and gained a lot of promotion on social media with #pepsiipl tags.

A new ad in very short span kept the people engaged , a thing wnich

zooadvertisement.

CONCLUSION

1. Analytics can be used to find out how new TV ads affects consumers online search and then change the keyword search bidding strategy to buy up relevant adwords as the ad is running .

2. With the coming up of analytics 2.0 every company is is spending an appropriate amount money on online as well as offline advertisement .Now

Facebook page , Twitter handle and Youtube channel and all this is the result of Analytics 2.0

3. The three activities of attribution , optimization and allocation are the basis of Analytics 2.0 and can never be left behind.

4. Setting up of a special Analytics organization in the company can do wonders to the revenue of the company .

"These slides were created by Shubham Verma( IIT Guwahati ) as part of an internship done under the guidance of Prof. Sameer Mathur(www.IIMInternship.com)"

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