Factor TG addresses the key shortcomings commonly found in traditional approaches when applied to advertising measurement:
- Brand Tracking: Not actionable, not granular, cannot distinguish media influence
- Media Mix Modeling: Not timely, not granular, problems detecting low-weight media, high margin of error
While both approaches are useful for other purposes, neither is appropriate for the task of measuring the rapidly changing and highly tactical environment of advertising today. Factor TG is a purpose-built advertising measurement solution that addresses these shortcomings, allowing major advertisers to gain immediate visibility into the actual performance of advertising campaigns, and to uncover opportunities to optimize media allocations and creative messaging for higher ROI.
Traditional brand and ad tracking based solutions do not distill the advertising effect from the overall market effect. For instance, a standard brand tracking solution may indicate that consumers' satisfaction, loyalty, purchase intent, etc. are dropping, without being able to detect if it is due to the overall market or category condition, or due to the brand's poor advertising effort. FTG helps clients identify the cause of what is happening to the brand, distill the true impact of advertising campaigns and take immediate corrective action. Factor TG develops a causal model to examine 'how' advertising is affecting consumers' attitudes and behaviors, and how to optimize the key outcome variables (sales revenue, profitability, etc.) that businesses are truly interested in.
The accuracy of traditional marketing mix model based solutions depends heavily on:
a) a large amount of aggregated data (weekly, monthly, etc.)
b) variation in the media spend
c) magnitude of the media spend
For example, a marketing mix model will not be able to detect the effectiveness of the online medium spend if it is sporadic in nature and has a very low share within the overall media spend portfolio. To resolve all these issues and provide more timely media recommendations, Factor TG uses disaggregated consumer-level data and applies an experimental design approach that detects the effectiveness of various media elements (creative execution, website visitation, effective media reach, etc.). This approach helps Factor TG disentangle advertising effects from media activities more effectively than any marketing mix modeling techniques.
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Factor TG |
Brand Tracking Solutions |
Modeling Solutions |
| Cross media measurement |
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| Campaign brand effectiveness |
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| Measures low-weight media |
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| Audience segment effectiveness |
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| Media mix optimization |
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| Creative optimization |
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| In-flight optimization |
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| Integrates survey and modelling approaches |
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| Goes to sales ROI |
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| Makes consumer segments measurable and actionable |
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* Modeling is generally effective only for high-weight media, such as television and print. A modeling-only approach cannot accurately measure the contribution of low-weight media, such as online.
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