Case Study: Measuring and Quantifying Synergy Across ATL and BTL Channels Using Marketing Mix Modelling
Introduction
In the competitive world of e-commerce, an Australian online retailer specializing in pet food, supplies, and accessories faced significant challenges in measuring the effectiveness of its marketing efforts. The brand employed a Through the Line (TTL) strategy, combining Above the Line (ATL) media channels like TV, Out-of-Home (OOH), and Radio with Below the Line (BTL) tactics such as Paid Social, Paid Search, and voucher promotions. However, the brand struggled to quantify the synergy between these channels, justify its marketing investments, and prove the financial impact of its campaigns.
This case study explores how a leading data analytics and marketing effectiveness consultancy used Marketing Mix Modelling (MMM) to help the retailer measure and optimize the combined effect of its ATL and BTL channels, ultimately driving online sales growth and improving return on ad spend (ROAS).
The Challenges
The retailer’s marketing strategy aimed to balance brand awareness (ATL) with direct sales activation (BTL). However, the brand faced several critical challenges:
1. Fragmented Media Data
Despite being an e-commerce business, the retailer’s media data was fragmented and poorly managed. The lack of a centralized data governance system made it difficult to track and analyze the performance of its campaigns.
2. Data Quality and Version Control Issues
The ATL media channels (TV, OOH, and Radio) had significant data quality issues. Media investment data was inconsistent, with multiple versions of the same data provided to the consultancy. This lack of reconciliation between media plans, actual buying reports, and financial invoices created confusion and inefficiencies.
3. Inability to Justify Marketing Strategy
The Chief Marketing Officer (CMO) believed in the power of a TTL strategy to drive both brand awareness and sales activation. However, they struggled to prove the financial impact of this approach to the Chief Financial Officer (CFO) and the board. The CMO needed to demonstrate the synergy between ATL and BTL channels—how combining these efforts delivered a combined effect greater than the sum of their individual impacts.
4. Lack of Data-Driven Insights
The CMO lacked the tools and methodologies to measure the effectiveness of their campaigns. Without clear data-driven insights, they couldn’t optimize marketing spend or defend their strategy to stakeholders.
The Solution: A Data-Driven Approach
The consultancy stepped in to address these challenges using Marketing Mix Modelling (MMM), a statistical analysis technique that quantifies the impact of various marketing activities on sales and other key performance indicators (KPIs). Here’s how the consultancy helped the retailer:
1. Calculating Synergy Across ATL and BTL Channels
The consultancy used advanced methodologies to measure the synergy—the combined effect—of all possible combinations of ATL and BTL channels. The retailer’s media mix included:
- ATL Channels: TV, OOH, Radio
- BTL Channels: Paid Social, Paid Search, Online Voucher Promotions
The possible combinations of ATL and BTL channels were:
- TV + Paid Social
- TV + Paid Search
- TV + Voucher Promotions
- OOH + Paid Social
- OOH + Paid Search
- OOH + Voucher Promotions
- Radio + Paid Social
- Radio + Paid Search
- Radio + Voucher Promotions
By analyzing these combinations, the consultancy quantified how each pair of channels worked together to drive sales and brand awareness.
2. Building a Unified Marketing Mix Model
The consultancy integrated data from all ATL and BTL channels into a single MMM framework. This allowed the retailer to:
- Measure the individual and combined impact of each channel.
- Identify the optimal allocation of marketing spend across channels.
- Understand the time lag effects of ATL channels (e.g., how TV ads influenced sales weeks later).
3. Automating Data Collection and Reconciliation
To address the retailer’s data quality issues, the consultancy built an automation pipeline that streamlined media data collection and reconciliation. This pipeline:
- Integrated data from media plans, buying reports, and financial invoices.
- Ensured version control and data accuracy.
- Provided real-time insights to the marketing team, enabling faster decision-making.
4. Proving the TTL Strategy
Using the MMM results, the consultancy demonstrated the effectiveness of the retailer’s TTL strategy. The analysis showed that combining ATL and BTL channels created a synergistic effect, where the combined impact was greater than the sum of individual channel impacts. For example:
- TV ads increased the effectiveness of Paid Social campaigns by 15%.
- OOH advertising boosted the ROI of Voucher Promotions by 20%.
The Results
The collaboration between the retailer and the consultancy delivered significant results:
1. Quantified Synergy and Justified TTL Strategy
The CMO was able to present clear, data-driven evidence to the board, proving the effectiveness of the TTL strategy. The synergy between ATL and BTL channels was quantified, showing how combined efforts drove greater results than individual channels.
2. 3% Growth in Online Sales
The retailer achieved a 3% increase in online sales compared to the same period in the previous year. This growth was directly linked to the optimized allocation of marketing spend across ATL and BTL channels.
3. Improved Brand Awareness
Consumer surveys showed a 2% increase in top-of-mind awareness and a 1.5% increase in unaided awareness during the campaign period. This demonstrated the success of ATL channels in building brand recognition.
4. 2.3x Increase in ROAS
The return on ad spend (ROAS) increased by 2.3 times compared to the non-treatment period, validating the efficiency of the optimized marketing mix.
5. Long-Term Partnership
Impressed by the results, the CMO signed a whole-year contract with the consultancy to continue leveraging data-driven insights for marketing optimization.
Conclusion
This success story highlights the power of Marketing Mix Modelling in measuring and optimizing the synergy between ATL and BTL channels. By partnering with a data analytics consultancy, the retailer was able to:
- Overcome data fragmentation and quality issues.
- Quantify the combined effect of its TTL strategy.
- Drive online sales growth and improve ROAS.
- Justify marketing investments to executive-level stakeholders.
For e-commerce brands, adopting a data-driven approach to marketing is no longer optional—it’s essential. By leveraging advanced analytics and automation, brands can unlock the full potential of their marketing efforts and achieve sustainable growth in a competitive market.
Key Takeaways for Marketers:
- Synergy Matters: Combining ATL and BTL channels can deliver greater results than individual efforts.
- Data Quality is Critical: Invest in data governance and automation to ensure accurate and consistent data.
- Prove Your Impact: Use MMM to quantify the financial impact of your marketing strategy.
- Embrace Data-Driven Marketing: Partner with experts to unlock the full potential of your campaigns.
By following this example, brands can transform their marketing strategies and achieve measurable, long-term success.