Leveraging Data

• Research & Data Quality
• Article

An Introduction to Robyn’s Open-Source Approach to Media Mix Modeling

• MSI

As privacy-centric changes reshape the digital advertising landscape, deterministic attribution and measurement of advertising-related user behavior are increasingly constrained. In response, there has been a resurgence in the use of traditional probabilistic measurement techniques, such as media and marketing mix modeling (m/MMM), particularly among digital-first advertisers. To address the gap for small and midsize businesses, marketing data scientists at Meta have developed the open-source computational package Robyn, designed to facilitate the adoption of m/MMM for digital advertising measurement.

Robyn is a widely adopted and actively maintained open-source tool that continually evolves. This article explores the computational components and design choices that underpin Robyn, emphasizing how it “packages up” m/MMM to promote organizational acceptance and mitigate common biases. The solutions described are not definitive but outline the pathways that the Robyn community has embarked on.

• Targets & Segments
• Article

Using AI Assistants to Predict Purchase Intent

• MSI

This study examines user interactions with AI assistants to infer purchase intent. By analyzing the text of user-initiated interactions, researchers build a bipartite network of nouns and verbs and measure the distance of specific words to "golden" purchasing words like "purchase," "buy" or "order." The study uses large language models, specifically Chat-GPT4, to annotate data with a measure of purchase intent and validates this method by comparing the results with cost-per-click (CPC) for keywords in Google Ads. The findings suggest that words used in an exchange with an AI assistant can predict purchase intent without customer tracking across interactions.

These findings have implications for using customized small versus large language models and can potentially inform advertising decisions. The study highlights the importance of understanding consumer behaviors in interactions with AI assistants. It provides a method to predict purchase intent based solely on the textual content of these interactions.

• Ad Effectiveness & ROI
• Article

Retail Media Networks: Growth, Opportunities and Challenges

• Knowledge at Hand; CMO Briefs

Retail media networks (RMNs) are rapidly becoming one of the largest and fastest-growing ad verticals in the U.S., offering personalized ads across retailers’ ecosystems. These networks also provide brands with targeted ads and higher conversion rates, while retailers gain new revenue streams and enhanced shopping experiences.

Despite staggering growth, RMNs face many challenges as they continue to grow globally, including a lack of standardization across networks, measurement difficulties, rising costs and complexity. Agencies face additional issues, such as teams lacking the necessary expertise to help clients navigate RMNs.

• Targets & Segments
• Article

How Social Media Platforms Affect Music Consumption

• MSI

Are social media platforms compensating musical artists enough for their IP? Although music companies claim social platforms cannibalize sales, the platforms say they give artists much needed exposure. Who is correct? The study examines the impact of TikTok on music consumption and revenue. It highlights what TikTok pays studios and discusses the concerns from Universal Music Group (UMG) regarding inadequate compensation for its artists.

Additionally, it mentions that videos on TikTok function as promotional materials or trailers for full-length productions. The study uses a  difference-in-difference model to analyze the data. It concludes that music labels can sharpen their licensing agreements based on the findings.

• Research & Data Quality
• Article

Predicting Sponsorship Retention in Marketing

• Journal of Advertising Research

This comprehensive model accurately predicts sponsorship retention in marketing. Researchers utilized a dataset of over 5,800 sponsorships to identify the key factors that influence sponsor loyalty and longevity.

• Research & Data Quality
• Article

AI Use in Advertising Research: Insights from the AI Handbook

Dive into the future of advertising research with this abridged version of the ARF's AI handbook. This Knowledge at Hand report and its accompanying one-page CMO brief describe best practices for utilizing AI tools for different aspects of advertising research. This short report is great for those already using AI and those thinking of interweaving it into their research function.

• Research & Data Quality
• Article

How to Calculate Reach and Frequency Using Virtual IDs (VIDs)

Current existing methods used to calculate reach and frequency of a campaign or media schedule are known to have deficiencies in measuring cross-device ad exposure. Restrictions to protect digital privacy complicate cross-platform exposure measurement even further. Multiple global research organizations have turned to a concept known as “virtual people,” to overcome these limitations in order to produce aggregate reach and frequency estimates. This report by the ARF Analytics Council provides a foundational overview of VIDs for a broad audience, providing ARF members with a stronger understanding of this vital topic.

• Creative & Branded Content
• Article

Retail Media Networks, Generative AI Top JAR’s Industry-Informed Research Priorities

• JOURNAL OF ADVERTISING RESEARCH

Retail media networks, generative AI across creative, market research and trust, ad effectiveness and attention: These are among the topics highlighted on the Journal of Advertising Research’s list of 2024 research priorities. The list is a result of one-on-one interviews with advertising professionals by Editor-in-Chief Colin Campbell, who asked: "What are your biggest needs and challenges?"

• Audience & Media Measurement
• Article

How to Leverage the Video Game Ecosystem for Marketing Analytics

• MSI

Online video gaming is a channel that has grown significantly in popularity in the last decade and the trend is likely to continue. Due to a massive group of highly engaged gamers, marketers can use this channel to understand this segment and their needs much better. However, this ecosystem, along with providing unique opportunities, also comes with unique challenges. This Marketing Science Institute (MSI) working paper offers a roadmap.

• Analytics & Data Science
• Article

Data Pooling could Reinvigorate Online Display Ads

• MSI

Buying online display ads in bulk through online exchanges makes it difficult to ascertain the effectiveness of such ads, a situation that’s less than ideal. This is especially true for new websites. One proposed solution is to pool data across advertisers and publishers. Doing so while running matching simulations can substantially improve the welfare of such ads for advertisers, publishers and networks, too.