“The future is already here – it’s just not evenly distributed.”
We believe that the future of ROI measurement, Planning and Optimization is already here and it is AI-based modelling. It is going to change the existing paradigm of statistics-based marketing mix modelling. A new era of ROI measurement is starting, and we believe heralds the beginning of the end of traditional MMM.
Let’s understand why.
Marketing leaders and analytics teams are stuck with a dinosaur of traditional linear market mix modelling for ROI measurement and optimization.
In a new omnichannel world, the litany of woes starts with MMM’s approach of treating every marketing channel and input as mutually-exclusive whereas the consumer clearly follows an interconnected behaviour.
The other limitations of MMM that gets the goat of marketers are lack of :
· Unified Measurement: Siloed models which don’t give a comprehensive ROI measurement
· Agility: Static models which are a post mortem but not learning dynamically
· Granularity: Traditional approach works on a very aggregate level of data and hence not able to provide the insights at a granular level of a particular channel, ad type, message
In addition to the above, the operational problem of 8 -12 weeks taken to do the modelling is a frustrating experience.
All these limitations stem from the underlying statistical techniques used to do ROI measurement.
The New Beginnings
In the last two to three years, AI-led techniques have revolutionized the way organizations and industry sectors use data to enable them their decision making. The marketing function has been a laggard to use the advancement of AI-based techniques.
These AI techniques if applied in marketing ROI measurement to be the game-changers.
AI-based deep learning techniques solve the interconnected impact of marketing elements on Sales. This revolutionary approach solves for limitations of the siloed, linear regression-based statistical modelling and insights at a very aggregate level.
What’s the big deal?
The causal learning methodology is going to create a new paradigm of marketing planning, optimization and measurement. It is faster, smarter, comprehensive and agile. This will help marketers make data-driven decisions in an agile manner
AI-based models are built in a rocket speed where the model can be created in minutes compared to multiple weeks taken to build a traditional model. This will help brands make decisions and plan in a swift manner.
Solves the biggest problem of Omnichannel marketing through a unified measurement best suited for an Omnichannel world. We are able to measure the ROI of both the measured and non-measured inputs in a single view.
The level of granularity of insights we get through these techniques is mind-blowing. Deep learning techniques understand the interconnected effect of every element of marketing and also understands the impact of various features like the impact of the message, size of the ad, duration of the ad, genres, channels and even the on-ground elements like sponsorships.
AI models learn in a bottom-up approach which helps them to learn at individual market level and not one aggregate market level.
The most important feature AI-led models deliver for CMOs is the agile learning models where the models learn continuously on the dynamic business data. This will help marketing teams create agile plans and optimise the ROI in a dynamic way. You can have monthly, quarterly and half-yearly models to review the performance and make the decisions in a dynamic way.
We at Data Poem strongly believe that this is the beginning of the end of the dinosaur era of measurement methodologies and built the world’s first Plug & Play AI platform marketing ROI measurement and Agile planning powered by deep learning.
There are some enterprise AI companies like H20.ai who is also pushing the marketing teams on AI-based modelling which is going to expedite the whole transformation.
We have seen that our clients are able to save a minimum of 20% of advertising spends and deploy them in the newer tactics and ideas to deliver better incremental growth using our platform.
We believe that this is the future and it already feels like a new normal for us. we can’t wait for the world of marketing to adopt and make data-driven ROI measurement challenge a thing of past