The IPA has today, 11 October, launched Econometrics Explained 2, an introductory guide to measuring marketing and communications effectiveness using Marketing Mix Modelling.
Written by Louise Cook, one of the UK’s leading econometricians, the publication provides an update to the IPA’s original 2004 publication. It has been updated and extended in recognition of the increasing demands from the C-suite for ever more detailed marketing accountability which has led to more brands using econometrics and in more complex applications.
Sections within the guide explain what econometric techniques can and cannot be used for, the planning and processes required to undertake an effective econometric analysis and explain the model development and analysis outputs. It also features practical examples from the IPA’s Effectiveness Awards Databank.
Says report author Louise Cook: “We need to distinguish between fast analysis and thorough analysis and ensure we are all clear about their relative usefulness and the risks of acting later versus the risks of acting incorrectly. Undoubtedly, we need to get better at pulling different lenses together, particularly econometrics/MMM and attribution modelling. This will considerably enhance our understanding of optimal digital placement within the media plan.”
Says Lynne Robinson, Research Director, IPA: “Econometrics is now being used by more companies than ever to address an ever growing set of questions. Econometrics Explained 2’s rationale is to enable readers to hold a conversation about econometrics confidently, not to build their own models.”
Says Marie Oldham, Chief Strategy Officer, VCCP Media: “In an industry teeming with “specialists” there is a risk that we leave analysis to the attribution or data team. This book reminds us that it is the responsibility of all involved in spending marketing budgets to clearly define our KPIs and to build measurement tools which seek to measure the right data, not the available data. Equally, Louise rightly challenges our perception that econometrics is only good for TV-centric campaigns with big budgets. The case studies highlighted demonstrate smart thinking around digital measurement, interesting variables such as weather and bringing big data and models together. This is a must-read for every client, planner, account director, data analyst – in fact everyone who has any responsibility for spending marketing money effectively.”
The report was officially launched during Eff Week 2017. Eff Week is the flagship event of the EffWorks calendar, the IPA’s new cross-industry Marketing Effectiveness initiative that seeks to create a global industry movement, to promote a marketing effectiveness culture in client and agency organisations and improve day-to-day working practices in three key areas of marketing marketing, managing marketing and monitoring marketing. Find out more at www.effworks.co.uk and join the conversation on Twitter at #EffWeek
Also at Eff week, Gain Theory - with input from a cross-industry working group, including the IPA, Google, Thinkbox, Facebook, L’Oreal and the BBC - presented a Green Paper into Measurement Strategy in the Digital Era. The Paper explores what key metrics marketing leaders could and should focus on. It assesses what good measurement strategies look like, and announces its goal to create a six-step plan towards a perfect marketing effectiveness measurement strategy based on the areas of language, objectives, mindset, ownership, consistency and practicalities. The Green Paper is available at www.effworks.co.uk and to feed into the research programme, contact Joyce Kelso, IPA Associate Director of Marketing, at firstname.lastname@example.org