Leading Retail Player Utilizes Marketing Mix Models to Enhance ROI with Google Cloud

Client

The client is a prominent retail player specializing in mattresses and accessories and has over 2,400 stores across the US.

Challenge

The client faced difficulties in assessing the effectiveness of various marketing channels to identify those with the highest Return on Investment (ROI), engagement, and conversion rates. Additionally, consolidating marketing data from various sources added a layer of complexity, and hindered the comparison of key metrics such as view ratings, ad clicks, etc. The client needed a mechanism to gauge the effectiveness of its marketing channels, in order to optimize their marketing investment and allocate resources efficiently.

Solution

The client collaborated with Visionet and leveraged Google Cloud technologies and Vertex AI AutoML to create a robust Marketing Mix Model (MMM). This model proficiently analyzed data from various marketing channels and standardized metrics for precise performance comparison. With historical data, the MMM accurately calculated Return of Advertising Spend (ROAS) across channels, measuring revenue generated per dollar spent on marketing campaigns.