What do we mean by Econometric Modelling?
Econometric Modelling is the study of the connection between media channels and sales. The extensive number of media channels and additional external influences make it increasingly difficult to understand what drives sales. Econometric modelling will show you where to invest your media budget, what exactly is bolstering sales and by how much.
Building a series of models to predict the effects of media spend, customer engagement and external events on acquisition. For example, how TV spend, Facebook likes and weather conditions affect sales.
Generating a full report on diminishing returns in order to identify maximum spend points within each media, i.e. the point where an increase in spend does not result in an increase in sales.
Creating a scenario planning tool that calculates the optimum spends for each media channel, which will in turn increase profit.
How it can help your business
It will give you a thorough understanding of how each communication channel, whether that be online or offline, drives sales and the media planning tool produced will help you create an in-depth recruitment plan to help optimise spend.