The ultimate goal of any marketing activities is to increase sales, either in short-term or long-term, and ideally each campaign or marketing channel should be evaluated based on the incremental profit, which is the additional sales we produce with advertising over what we would have sold without advertising, relative to its cost. By analyzing the correlations between marketing activities and the transactions, weakness and strengths of various channels, seasonality of consumer’s response, the marketing team could evaluate the cost efficiency and thus move forward to optimize the resources allocation for marketing spending, and strategically plan marketing events to improve the effectiveness of marketing efforts.
Among diverse marketing activities, advertising is a major mean for branding and informing. Both online (emails, social media, displays, etc.) and offline (direct mails) advertisements play an indispensable role in marketing. As placing ads is expensive in terms of the cost of time, recourses, and budget, one most frequently asked question from the management team is that: how does my advertising work? With this question in mind, our team leveraged four methods to tackle the advertising effectiveness measurement problem: last-click attribution analysis, holdout testing (experimentation), marketing mix models and model-based attribution analysis.
The main goal of this project is to evaluate the effectiveness of different advertising channels from four different perspectives from 500,000+ data. Meanwhile, we would learn from the advantages and disadvantages of the approaches and gain a more comprehensive understanding of mix modeling methods for continuous study.
R R Shiny