A quick post this AM to point readers to a great piece of work from MarketShare Partners and the IAB that was released last week.
The case studies presented are interesting and present exactly the type of rigorous analysis that should go into optimizing the marketing mix. We in online advertising spend most of our time thinking about the downstream decisions – i.e., how to get more of the budget that’s available to our channel. It’s great to see some smart thinking from a smart company focused on the upstream decisions as well.
Some highlights:
- A relatively small reallocation of media spend can have a significant impact on marketers’ revenue. For example, one media optimization scenario examined in this study demonstrated a 6% increase in revenue—even after a 13% decrease in total marketing spend—when dollars were shifted to interactive.
- In all three of the scenarios presented, huge increases in online display spend were recommended (average of 107%). These recommended increases were due to a combination of relative effectiveness, relative saturation effects and cross-media synergies.
- The average recommended increase in online display spend was nearly twice the average recommended increase in Search spend (61%)
- In 2 of the 3 scenarios presented, MSPs analysis explicitly recommended significant shifts in spend away from bottom of the funnel strategies (promotions/incentives) to upper funnel strategies (media)
I would recommend everyone take a few minutes to read this white paper, and stay on the lookout for more great stuff from MSP.
Andy's Blog 