This book helps marketing decision makers in allocating their budget to diverse communication channels and different business units in an ROI-optimal way, and to adapt it in an agile manner. The optimal allocation of resources in marketing is not very complex in theory, but in practice a variety of questions arise, for example: How do you find the optimal mix, even across brands and product lines, and how do you adjust it dynamically? What is the right balance between image and performance marketing? How do you tackle strategic data management and other organizational challenges?
The authors guide the reader through the entire process from data collection to marketing mix modeling and campaign tracking to tool selection. The book strikes the right balance between theoretical sophistication and necessary pragmatism, with numerous concrete recommendations for decision makers.
Author(s): Sascha Stürze, Markus Hoyer, Claudio Righetti, Matthias Rasztar
Series: Management for Professionals
Publisher: Springer
Year: 2022
Language: English
Pages: 124
City: Wiesbaden
Foreword
Acknowledgments
Contents
About the Authors
List of Figures
List of Table
1: Introduction
2: Optimised Budget Allocation in Marketing ``Beyond Media´´
2.1 Allocation Is Key!
2.2 Allocation Concerns More Than Media Mix
2.3 Global, Cross-Product Budget Allocation Bears Sizeable EBIT Potential
2.4 The Bigger Part of EBIT Impact Does NOT Result from Media Allocation
2.5 Recommendations for Corporate Decision Makers
3: Quantitative Consideration of the Long-Term Effect of Marketing Measures
3.1 Obvious Existence, Difficult Proof
3.2 Marketing Science Provides Long-Term Multipliers
3.3 Benchmarks from Practice Show Factor 2 and Broad Spread
3.4 Recommendations for Corporate Decision Makers
4: Striking the Right Balance: Image vs. Performance Marketing
4.1 The Performance Promise
4.2 Where Does Image End, Where Does Performance Begin?
4.3 Can Digital Advertising Be Image Building at All?
4.4 But How to Find the Optimal Balance?
4.5 ``Seeding´´ Makes No Sense Without ``Harvesting´´
4.6 Recommendations for Corporate Decision Makers
Digression I: What Happens When Brands ``Go Dark´´, for Example, in a Recession?
Should Advertising Budgets Be Cut in a Recession?
5: Campaign Tracking and Successful Marketing Controlling
5.1 Campaign-Specific Analyses Instead of Average Effectiveness
5.2 Marketing Controlling in the Context of Dynamic Channel Development
5.3 The Role of Pre-tests and Campaign Tracking
5.4 Recommendations for Corporate Decision Makers
6: Modelling, Model Architecture, and Model Quality
6.1 The Right Target Variable
6.2 The Right Model Architecture
6.3 Model Quality Is More Than R2
6.4 The Right Frequency of Updates
6.5 Recommendations for Corporate Decision Makers
7: Multi-touch Attribution and Unified Measurement
7.1 Two Tools: One Goal
7.2 There Is No Such Thing as a Free Lunch: Differences and Use Cases
7.3 MTAs Are (Too) Often Nothing More Than Rules
7.4 Best of Both Worlds?
7.5 Recommendations for Corporate Decision Makers
8: Individual Targeting and Privacy
8.1 Segment-of-One
8.2 Benefits of Individual Targeting and the Power of First-Party Data
8.3 Unmet Expectations and the Risks of Hyper-Targeting
8.4 Limitations Due to Regulation and Walled Gardens
8.5 Is Spray`n´Pray Coming Back Now?
8.6 Recommendations for Corporate Decision Makers
9: Agile Marketing, Agile Budgeting
9.1 The Basics of Agile Marketing
9.2 Agile Marketing: The Key to Success?
9.3 How to Implement Agile Marketing
9.4 Recommendations for Corporate Decision Makers
Digression II: Zero-Based Budgeting (ZBB)-Blessing or Curse?
10: ``The Good, The Bad and The Ugly´´: Data Requirements and Formats for a Successful and Cost-Effective Implementation
10.1 Data Sources and Basic Requirements for Model Variables
10.2 Data Structure: Small Differences with a Big Effect
10.3 Dealing with ``Data-Poor´´ Allocation Units
10.4 Recommendations for Corporate Decision Makers
11: In- Versus Outsourcing and Vendor Selection
11.1 In- Versus Outsourcing
11.2 Early Phase of Orientation: Pilot Studies and First Provider Screening
11.3 Technical Evaluation of Service Providers
11.4 Typical Cost Drivers from the Service Provider Perspective
11.5 Scorecards for Vendor Pitches
11.6 Recommendations for Corporate Decision Makers
12: Marketing in 2023ff: Agility as the ``New Normal´´
