In the cosmetics industry, manufacturers compete for their customers’ attention on every channel–from TV commercials to search engine and banner advertising, social media and influencers. But how do you measure what generates sales and how the channels work together? Media Plan, one of Germany’s leading media agencies, aims to show one of its clients – a top brand in the cosmetics sector – how high the ROI (Return On Investment) of the selected channels is and how the advertising budget is optimally allocated across channels. Here is the challenge: For off-line channels like TV, success is hard to measure directly. And the measurability of online channels suffers from the gradual demise of tracking cookies. What is needed is a solution that not only evaluates the direct value of each channel, but also shows how these channels interact with each other. We can then decide on the perfect media mix.
The answer– Neutrum EVO Optimizer’s Media Mix Modeling (MMM) module is like a super-smart marketing expert that uses AI-based modeling to determine the impact of channels and campaigns on the desired target metric (e.g. clicks, sales or revenue), to determine the best budget allocation. MMM goes beyond simply evaluating each channel by uncovering the synergies and interactions between different channels. Even for difficult-to-measure channels like TV advertising, MMM shows how this “traditional” channel contributes to the overall strategy, for example by revealing how many more products were sold–it does that by reliably figuring out the mathematical relationships between the broadcast spots. The tool helps make long-term strategic decisions by providing a solid database that serves as the foundation for budget and campaign planning. The given cosmetics brand will thus have absolute clarity about the impact of its advertising. It can thus achieve a much more precise and efficient optimization of its marketing expenditure.
With Neutrum EVO Optimizer MMM, Media Plan has enabled its customers to optimize their advertising budgets in a data-driven manner. Media Plan can thus clearly analyze the performance of its various channels–in particular, the interactions between TV, social media, and other digital channels can be analyzed with maximum transparency. Media Plan can now make informed decisions about its budget allocations – the ROI for the expenditure of various channels was increased by more than 27%. For Media Plan, this first success was convincing. So, they decided to extend their use of Media Mix Modelling with Neutrum EVO Optimizer to other customers.
German 
