Unpicking the effects of all your different marketing activities – truly understanding your marketing ‘mix’ – usually requires specialist analysis. Marketing mix modelling, using econometrics, is the best-established methodology of doing this. It is also sometimes frighteningly ‘statistical’. As a result, it can appear a ‘black box’ process, somewhat divorced from the real world, with results which may not make intuitive sense.

At Billetts we believe part of our role is to demystify the process in giving you clear insight and accurate measurement.

Econometrics explained

Econometrics literally means 'economic measurement'. It is a combination of economics and statistics. The most important method in econometrics is ‘time-series multiple regression’. Regression analysis is used to ‘model’ relationships between variables and determine the magnitude of those relationships. It is often described as like trying to unbake a cake – to work out the ingredients and the recipe after the cake has been baked.

As the name suggests, time-series analysis examines variables over time, such as the effect of media investments on sales. The most important feature of a time-series regression approach is that it allows us to model all the many influences on sales, or indeed any response metric, simultaneously.

However, in order to make sure that we will deliver analysis and insight which makes sense, we always start with a complete review of your data. This data ‘landscaping’ stage is an essential first step towards a deeper knowledge of your business and gives you added confidence in the process.

Answering your key questions

Billetts use advanced econometric techniques to answer the kinds of questions marketers ask:

• What media channels deliver the most sales?
• What media channels deliver the best ROI?
  
• What is the impact of the different messages that we communicate on ROI?
  
• What is the impact of competitive activity on ROI?
  
• What drives people into the store or online in the short term?
  
• What is the longer-term impact of our advertising and PR?

Keeping it simple

Our strategy is to:

• Create a comprehensive picture of your business performance which makes intuitive ‘business’ as well as ‘mathematical’ sense
  
• Derive meaningful ROI measurements for each key part of your business and for the main media
  
• Keep it as simple as possible!
  
• Keeping it simple means clear output charts which summarise what has happened and which answer your ‘exam’ questions.

Click on the links on the left to find out more.