Enhancing profitability by optimising media plans
Econometric modelling is a vital tool not just for marketing but also our wider business, and it needs to be balanced with commercial pragmatism. The econometrics work we have done has given us complete transparency about the decisions we make and helped to increase return on investment sustainably. This is much more than just smart mathematics – it’s an applied, consultative process, based on rigorous mathematical modelling.
Rob Murray Marketing Director at Wickes
Case Study Highlights
- Optimised marketing spend across all channels
- Revised end-to-end promotional and marketing strategy
- Built bespoke tool to optimise budget between media lines, messages, and buying seasons
Objectives
Wickes is a leading UK do-it-yourself retailer with more 230 stores across the UK and an annual turnover of more than £70m. In common with many retailers – particularly private label retailers which rely on a strong trading brand – Wickes is always looking for ways to maximise the impact of its marketing spend. Unlike some, it has an established track record of using econometrics successfully to track and enhance return on investment. Even during the tough years of the recession, Wickes managed to increase its marketing spend dramatically – including a 20% boost in 2008 – by delivering demonstrable, incremental value to the business.
As a long-standing client of other Ebiquity services from audit to media intelligence, Wickes asked our Marketing Effectiveness team to assess the return on its £20m+ advertising investment. For the past two years, we have also helped Wickes plan and optimise its media spend prospectively. The core objective of the retailer’s engagements with Ebiquity has been to boost profit.
Highlights
- 1. Added £10m profit to business by optimising media planning
- 2. Sustained 10% increase in return on marketing investment, year-on-year
- 3. Increased transparency of agency activity
- 4. Empowered evidence-based decision-making across Wickes’ marketing leadership
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