ADVERTISING ANALYTICS 2.

0
A HAVARD BUSINESS REVIEW ARTICLE

SHUBHAM VERMA

IIT GUWAHATI

For a long time , advertising impact

were measured one medium at a
time .

But in actual , they interact with each other

TV ad can prompt a Google search on mobile phone ,

that can lead to a click through on a display ad and
ultimately end in sales.

Knowing how different medias interact ,

companies can have a more effective budget
for advertising
Companies can get a rise in sales
without spending more .

Objectives
of
the
article
Objectives of the article
Understanding the importance of Analytics 2.0 in
advertisement and marketing .
Steps in analytics 2.0 and how to implement them .

Analyse the real life examples to explain the

situation
Understanding some of the principles of marketing .

Early methods of analysing the advertisement impact

1.Media Mix Modelling

2.Swim lane measurement

MEDIA MIX MODELLING

Marketers link scanner data with
advertising and decide how to
allocate marketing resources.

DIGITAL MARKETING

Digital Marketing provided with the

ability to monitor every mouse click
,measuring cause and effect
relationship between advertising
became easier .

SWIM LANE MEASUREMENT

Marketers measure the performance

of each type of marketing activities as
if they work independently of each
other .

Swim lane measurement

underestimated social media
and overestimated PR and Paid
search .
There have been situations in
which revenue calculated by
marketers is more than actual
revenue.

we produce the equivalent of the

amount of data that the Library of
Congress has in its entire print
collection. Most of it is irrelevant
noise. So unless you have good
techniques for filtering and
processing the information
going to get into trouble
-Nate Silver , statistician and writer

2.0
or

It quantifies cross media and cross channel effects of marketing , as well as direct and
indirect effect of business drivers

Analytics has helped

companies get the answers
to two very important
questions :
1. How did the combination
of ad exposures interact to
influence the customer to
purchase ?
2. Are they investing the right
amount at the right point
in the customer decision
journey to purchase a
product ?

3 broad activities involved

in analytics 2.0 :
1.Attribution
2.Optimization
3.Allocation

Attribution
Process of quantifying the contribution of each
element of advertising or simply collection of
appropriate data .

process. Data should be collected across five categories :

1. Market conditions
4. Consumer response

2. Competitive activities
5. Business outcomes

3. Marketing actions

Optimization
software

ASSIST RATES

The indirect impact of one marketing activity on

other , is called assist rate .
An analysis could pick up a
click-throughs on an online banner ad after a new TV
spot goes live and link that effect to changes in
purchase patterns . This would provide a truer
picture of ROI on TV ads and search ads.

Use of predictive analytics tools to run scenarios

for business planning . It helps to make better
decisions about distribution of revenue towards
different projects and hence increasing the sales .

ELASTICITY

Ratio of percentage change in one variable to

percentage change in other variable .
Knowing elasticity would help to predict the
how the specific changes made to different
activities would influence particular outcome.

In a war-gaming process , team

members define marketing goals
such as revenue target , share goal or
margin goal and software generates
a set market scenarios and
recommendation to achieve them.

3 Allocation
Pulling the results of attribution and
optimization into market , measuring
outcomes , validating models and making
course corrections .

Now a days , marketers imply

optimization and allocation
simultaneously i.e releasing
various ads and analysing which
had worked better .

5 steps for
implementation
1. Embrace analytics as an
organization

2. Appoint an analytical minded

person to tasks.
3. Conduct an inventory of data
through organization

4. Build limited scope models

that aim to achieve early wins
5. Aggressive testing and
feeding of results.

Some examples from indian context

SOME EXAMPLES
FROM INDIAN CONTEXT

Flipkart , one of the biggest ecommerce firm of India advertises

through various ads on TV , emails and
banner ads .
A TV ad of a special sale on the site
excites the viewer and an email on his
mobile saying that the sale has started
would make the person visit the site
and hence lead to purchase . A banner
ad about the sale and the special offer
on site would take the person to the
site along with the excitement created
by the TV ad .
Thus , all the mediums interacted with
each other to create a sale on the site.

Analytics has shown that people in different countries have different priorities
while buying a product say in case of purchasing a car .
In India people are more concerned about the mileage or the fuel efficiency of the
car more than anything else along with being cheap . Different companies advertise
through showcasing the fuel efficiency of the car .
Recent patterns have shown that many people buy car as a status symbol which
many of the companies are using in their advertisements.

A CASE OF ADVERTISING IN IPL

This IPL season, SportsMechanics is working with Mumbai Indians, Chennai

Super Kings and Royal Challengers Bangalore to help increase engagement with
fans by serving up analytics and infographics. Mr. Ramakrishnan says ,
The banter in social media starts one hour before a game commences and
tapers down well after it is over. A data insert for Chennai Super Kings received
30,000 hits on Facebook in just one hour

Analytics show audience likes a team which connect with them . And hence none of
the team forgets this .

Every team has Facebook page for the fans , Youtube channels which have videos
from their favourite players during practice or from the IPL parties or just a special
message from the team member urging them to support their team . Every Team
also has special hashtags which keeps a count for the buzz of their team and thus
help them to change their strategy if the buzz is low .

IPL is the most-watched Twenty20 league in the world

and the first sporting event to be broadcast live on
YouTube.
The brand value of the 2014 Indian Premier League was estimated to be around US $7.2 billion. This

1.Total mentions of IPL 8 season on social media till date is 1,86,569. 88.55% on Twitter.
2. Gender distribution 85% Male & 15% Female
3. Sentiment: Neutral 89.35%, Positive 9.85%, Negative 0.80%
4. Buzz of #IPL8 in last 9 Days on Twitter 69K
5. Buzz of #PEPSIIPL in last 30 Days on Twitter 109K
6. The official page of IPL on Facebook has increased its fan base by 400K this season
7. KKR is the favourite team on Facebook with 11 Million Fans
8. IPL official profile has 2.5 million followers on Twitter!
9. CSK is the favourite team with 1.4 million followers on Twitter
10. 1 Lakh views of IPL 8 opening ceremony promotion video on YouTube!
11. 52,778 followers on Instagram
12. 1 million followers on Google +

Every company wants to gets associated with IPL , one way or the other . Becoming
the title sponsor , associate sponsor , particular match sponsor , getting a place on
players jersey or an ad on the big screen , every company is fighting for it because
it is the biggest sporting event in the country and one of the best way to advertise
and it is the data and which proves the fact .

Yes Bank and

zoo ad were the gained a lot by advertising
in IPL

Becoming the title sponsor of IPL , Pepsi gained a

special liking in the hearts of IPL lovers .They were way
ahead of the competitor brands like Coca- Cola and
Thumps up among IPL fans and gained a lot of
promotion on social media with #pepsiipl tags.

A new ad in very
short span kept the people engaged , a thing wnich
zoo
advertisement.

CONCLUSION
1. Analytics can be used to find out how new TV ads affects consumers online
search and then change the keyword search bidding strategy to buy up
relevant adwords as the ad is running .
2. With the coming up of analytics 2.0 every company is is spending an
appropriate amount money on online as well as offline advertisement .Now
Facebook page , Twitter handle and Youtube channel and all this is the result
of Analytics 2.0

3. The three activities of attribution , optimization and allocation are the basis of
Analytics 2.0 and can never be left behind.
4. Setting up of a special Analytics organization in the company can do wonders
to the revenue of the company .

"These slides were created by

Shubham Verma( IIT Guwahati ) as
part of an internship done under
the guidance of Prof. Sameer
Mathur
(www.IIMInternship.com)"

THANK YOU