MMM (marketing and media mix)

The Value of “Other” Media

Given the current focus on social media and streaming services as advertising vehicles, it is worth paying attention to studies that remind us of the value of radio and Out-Of-Home (OOH). 

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OOH Measurement’s Game Has Changed

Christina RadiganSVP, Research & Insights, Outfront

Christina Radigan of Outfront explored the advantages of out-of-home advertising (OOH) and discussed advancements in its measurement techniques. Christina noted that with the loss of cookies and third-party data, contextual ad placement will see a renewed sense of importance, and in OOH, location is a proxy for context, driving content. She further indicated the benefits of OOH citing a recent study by Omnicom, using marketing mix modeling (MMM), which found that increased OOH spend drives revenue return on ad spend (RROAS). This research also highlighted that OOH is underfunded, representing only 4% to 5% of the total media marketplace. Following up on this, Christina pointed to attribution metrics, measuring the impact of OOH ad exposure on brand metrics and consumer behaviors, to demonstrate OOH's effectiveness at the campaign level. Expanding on their work in attribution, she noted changes stemming from the pandemic: Format proliferation and greater digitization, privacy-compliant mobile measurement ramping up (opt-in survey panel and SDK) and performance marketing and measurement becoming table stakes for budget allocations. New measurement opportunities from OOH intercepts included brand lift studies, footfall, website visitation, app download and app activity and tune in. Finally, she examined brand studies conducted for Nissan and Professional Bull Riders (PBR), showcasing the effectiveness of OOH advertising in driving recall, ticket sales and revenue. Key takeaways:
  • MMMs return to the forefront, as models become more campaign sensitive and are privacy compliant (powered by ML and AI).
  • A study from Omnicom, using MMM, found that optimizing OOH spend in automotive increased brand consideration (11%) and brand awareness (19%). In CPG food, optimizing OOH spend increased purchase intent (24%) and optimizing OOH spend in retail grocery increased awareness (9%).
  • OOH now represents a plethora of formats (e.g., roadside ads, rail and bus ads, digital and print) and has the ability to surround the consumer across their journey, providing the ability to measure up and down the funnel, in addition to fueling behavioral research.
  • Key factors for successful measurement in OOH: feasibility (e.g., scale and scope of the campaign, reach and frequency), the right KPIs (e.g., campaign goal) and creative best practices (Is the creative made for OOH?).
  • OOH advertising is yielding tangible outcomes by boosting consumer attention (+49%). Additionally, there has been a notable surge in advertiser engagement (+200%).
  • Ad recall rates in OOH continue to increase (e.g., 30% in 2020 vs. 44% in 2023).

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2023 Attribution & Analytics Accelerator

The Attribution & Analytics Accelerator returned for its eighth year as the only event focused exclusively on attribution, marketing mix models, in-market testing and the science of marketing performance measurement. The boldest and brightest minds took the stage to share their latest innovations and case studies. Modelers, marketers, researchers and data scientists gathered in NYC to quicken the pace of innovation, fortify the science and galvanize the industry toward best practices and improved solutions. Content is available to event attendees and ARF members.

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Advertising Effectiveness: Performance Measurement in the New World of Privacy and Tools

On July 26, measurement practitioners discussed how to adapt to this new era of privacy with tools for measuring ad performance effectiveness. Panelists explored new considerations for existing methods, such as marketing mix modeling (MMMs) and multi-touch attribution (MTAs), and discussed the pros and cons of various privacy enhancing technologies (PETs), including multi-party computation, clean rooms, and more.