Return on Marketing Investment

Optimization Group Blog

Return on Marketing Investment Whitepaper

Posted by Isaiah Adams

January 30, 2015

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We talk a lot about measuring the effectiveness of marketing investments here on the blog. For one, it’s something we’re passionate about and enjoy doing. Secondly, and even more importantly, we believe it’s something that brings enormous value to your business. In late 2014 we had a conversation with a business about our Return on Marketing Investment (ROMI) work and they asked a very important question (which also led to a blog article), “Why isn’t everyone doing this?”
 
We believe one of the reasons is businesses don’t understand how the process works and have a hard time visualizing what the end result looks like. 
 
For this reason, and many others, today we are releasing the Return on Marketing Investment (ROMI) whitepaper. In a nutshell, think of ROMI as an advanced form of Media-Mix Modeling (MMM). At the end of the whitepaper you’ll have access to a demo simulator where you can play around with the data and see your results. It’s a very user-friendly way of looking at how different variables and spending levels impact your desired result (e.g. Sales).
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Topics: Return On Marketing Investment

Am I Spending Enough on Advertising?

Posted by Isaiah Adams

January 21, 2015

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"Half the money I spend on advertising is wasted; the trouble is I don't know which half." - John Wanamaker

 
Advertising is a continuous guessing game. Doing your homework (research) can help you make informed decisions and minimize risk. Perhaps you’re confident answering some of advertising’s key questions like:
 
When should I spend?
  • If I sell ice cream cones, I should probably spend most of my advertising dollars in the summer when the temperatures are high.
Who should I advertising to?
  • What are the characteristics of my primary customer?
What should I say?
  • Which message is most motivating to produce my desired response? (e.g. sales)
Where should I advertise?
  • Which country/province/region/state/city should I advertise in?
 
The question that is often a black box for companies is, “How much should I spend?”
 
Maybe you’ve tried to answer this question by varying your advertising spending levels. You’re on the right track, but you still haven’t answered the question.
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Topics: Return On Marketing Investment

The Surprising Relevance of TV Advertising in the Mobile Era

Posted by Isaiah Adams

January 7, 2015

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When streaming video services on mobile came onto the scene people started predicting the death of television. To be honest, I was one of them. Many people thought this way because they believed the only reason people didn’t watch TV on their phones is because they couldn’t. The functionality was not there for the masses. Once people could watch TV on mobile, people thought the flood gates would open and the days of staring at the big screen in your living room were long gone.
 
Turns out we were wrong. TV is still a big player. How do we know?
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Topics: Marketing & Advertising

Success Story of Hybrid Research Method

Posted by Isaiah Adams

December 18, 2014

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DISCLAIMER: We fully respect the integrity and confidentiality of our clients. Our case studies do not include any real client data. We want you to know that the safety of your information is important to us. Our case studies are designed to give readers a general idea of what the process and deliverables look like.
 
When clients look to invest in research they often think it boils down to choosing between qualitative or quantitative research. While each of these approaches has its distinct benefits, combining the two in a hybrid approach can lead to deeper and more meaningful results. Today we would like to share a case study about how a Fortune 500 company partnered with Optimization Group and successfully experimented with a hybrid research method. The study guided key strategic decisions in their fast-changing category.
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Topics: Case Studies

The Ultimate List of the Best Market Research Quotes

Posted by Isaiah Adams

December 5, 2014

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Dan Quirk recently started a thread in his LinkedIn group and asked for everyone’s favorite research-related quote. We thought the quotes were so fantastic that we had to share them with everyone. Plus, all of the best research quotes seem to be scattered across the web. So we compiled the quotes we liked from Dan's list, some of our favorite quotes internally, and some of the best from around the web to create the ultimate list of market research quotes.
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Topics: Marketing Research

Explaining Data Mining in Useful Language

Posted by Isaiah Adams

December 3, 2014

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Data Mining FAQ

 
For those not familiar with data mining, simply mentioning the term ‘data mining’ often leads people to mentally check out. The term is carelessly thrown around; leaving the definition unclear. The truth is, the subject is full of jargon, tedious detail, and complicated math; but if you can understand some of the basic concepts it can be extremely valuable.
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Topics: Data Mining

A Market Research Thanksgiving

Posted by Isaiah Adams

November 25, 2014

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Thanksgiving is a great time of year. Most of us, unless you work in retail, take the time off to be with family and share a good meal. Inspired by BrainJuicer’s “Research Christmas Carol” from last year, we decided to have a little holiday fun and give our fellow researchers what we’ve all dreamed about – a Market Research Thanksgiving. We took a stab at matching up some of the market research staples with the most common items on the Thanksgiving menu.
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Topics: Marketing Research

What is Stimulus Response Measurement?

Posted by Isaiah Adams

November 20, 2014

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Stimulus response is a measuring technique that traces all the way back to experiments done in the late 1800’s by Ivan Pavlov. Stimulus response is all about testing and measuring the response. The classic example is the stand-up comedian. A comedian doesn’t come on stage and say, “I’m very funny.” A comedian knows how funny they are by how the crowd reacts to their jokes. When a comedian tells a new joke they measure how the crowd responds. The next time the comedian tells that joke they might switch how they deliver the joke. They might change how long they pause before the punchline, etc. All of these variations of the joke are stimuli. Each time the comedian tells the joke they are measuring the crowd reaction in hopes that they might find the way to deliver the joke that yields the largest amount of laughter.
 
This same type of testing is very common in marketing research. Instead of measuring a joke, businesses are measuring how consumers respond to different marketing stimuli. This type of testing is very useful in communications. The idea here is, “What can we say that will maximize the chance of our desired response?” For example, “What can we say that will maximize the interest in purchasing our product?”
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Topics: Idea Optimization

12 Things We’ve Helped Clients With Lately

Posted by Isaiah Adams

November 7, 2014

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In our previous blog we touched on the most important thing in market research – answering specific business questions. Today we’ll keep the same theme and look at a list of business questions that Optimization Group has helped clients with lately. We hope this list will give you insight into what questions other businesses are trying to answer and how they articulate these questions.
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Topics: OG News

The Most Important Thing in Market Research

Posted by Isaiah Adams

November 5, 2014

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If you’ve spent any time in market research or are a buyer of research, then you’re fully aware of the perceived friction between “traditional” methods and newer approaches. We recently highlighted how the rapid technology changes in market research have brought a feeling of negativity over the industry. We found that many people believe that if companies don’t switch to the new methods they will become extinct or fail to execute research effectively. In other words, people view the two sides of this argument as an “either or” situation. Either companies have traditional methods or they switch to the new methods.
 
A recent study by UK-based agency, RSM, helps us realize we are looking at this situation all wrong. The study was among research professionals and showed that 93% of respondents used “traditional” methods in the past 12 months vs. only 18% for non-traditional methods.
 
This study helps reaffirm that the most important thing in market research has been and will always be, answering specific business questions. All too often we get caught up arguing over traditional vs. non-traditional methods. In reality, it doesn’t matter which method we use as long as the business question is being answered.
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Topics: Marketing Research

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