Things are happening in the cosmetics industry – from TV commercials and infomercials to search engine and banner advertising, social media and influencers, manufacturers are vying for customers’ favor on every channel. But which measures really generate sales and how do they work together? Media Plan, one of Germany’s leading media agencies, wants to transparently show one of its clients – a top brand in the cosmetics sector – how high the ROI (return on investment) of the booked channels is and how the advertising budget is optimally allocated across the channels. The challenge: For offline channels like TV, success is difficult to measure directly, and the measurability of online channels is suffering 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 – and, on this basis, recommends the perfect media mix.
The answer: The Media Mix Modeling (MMM) module from the NEUTRUM EVO Optimizer. MMM is like a super-intelligent marketing doctor, using AI-supported modeling to determine in detail the impact of channels and campaigns on the desired target metric – for example, clicks, sales, or revenue – and determine the best budget allocation. It 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 even in the digital age, for example, by revealing how many more products were sold in a reliable mathematical relationship compared to the broadcast spots. The tool thus helps make long-term strategic decisions by providing a solid database that serves as the foundation for budget and campaign planning. The result: The cosmetics brand has absolute clarity about the impact of its advertising and achieves a much more precise and efficient optimization of the entire marketing mix.
With the MMM from the NEUTRUM EVO Optimizer, Media Plan unleashed true data power for its client, enabling them to precisely and data-drivenly optimize their advertising budgets. The performance of the channels used was broken down clearly and systematically. In particular, the detailed analysis of the interactions between TV, social media, and other digital channels provided maximum transparency for making informed decisions about budget allocation – and demonstrated how ROI could be increased by more than 27%.
For Media Plan, this success was so convincing that they expanded media mix modeling with the NEUTRUM EVO Optimizer to other customers.
German 
