Econometrics for marketing decisions, one case at a time.
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Moving the same budget to where the next euro returns most, under real constraints, and knowing when a recommendation is too thin to follow. How it works in tea.
A step of the Media Effectiveness Path.
The dearest GRP works the least.
Eight TV dayparts from a €2M plan, plotted over two years. Cost per GRP on the horizontal axis, on a log scale because the prices span a factor of seventeen. What each euro gave back on the vertical. The size of each bubble is how many GRPs that slot actually buys inside the plan.
Filed under Budget Optimization | Permalink
Same budget. Different answer. €15.4M over two years, and nobody is being asked for more money.
Grey is what was spent. Terracotta is what the model would spend, on the same total, given what it learned about each channel's response curve.
Filed under Budget Optimization | Permalink