Reaching target audiences is becoming increasingly expensive, and the media landscape is growing more complex. At the same time, factors such as seasonality, promotions and weather influence sales of products like Echinaforce (a herbal medicinal product). A.Vogel therefore wants to understand the actual contribution of individual marketing channels and sales promotions to business success and how to maximise their impact. The company needs a data-driven solution that reveals the true effects of marketing and promotions, taking into account interactions, marginal utility and external factors to enable precise revenue-driven media planning.
NEUTRUM’s Marketing Mix Modeling (MMM) uses AI-powered modeling to identify which marketing activities and sales promotions generate incremental revenue, how their effects interact and how well they are scalable. To this end, not only are the internal data sources across all media, channels and systems taken into account. External influences from seasonality, weather and public health data to competitors’ activities are also onboarded, massively improving modeling accuracy. For the Echinaforce campaign, NEUTRUM’s recommended marketing mix is a bold departure from the status quo, putting more emphasis on branding-heavy offline channels such as TV and Radio and almost completely pulling out of Social Media and performance marketing in general. NEUTRUM also empowers A.Vogel with extensive scenario modeling to assess the impact of changes in budget and media mix.
In a pilot directly pitching the current setup (in-house plus media agency) against the mix recommended by NEUTRUM under equal conditions – same time, same geo (split evenly), same product, same creative -, NEUTRUM’s plan delivered 33% more RoAS. As a consequence, A.Vogel is in the process of rolling out this 360°, AI-powered approach across more products and countries.