Statistical Methods in Finance 2019

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Abstract

Measuring Return on Marketing Investment

by Balaji Raman, Cogitaas

In this talk, we will be presenting three case studies from FMCG domain on evaluating marketing investment for driving brand sales/growth. The focus will be on two types of investment - Trade and Media. Generally, FMCG firms provide incentives to retailers to drive sales. These spends are over and above the usual margins and is one of the fastest growing marketing expenditures. The first case study is for a leading facewash brand and the returns are evaluated under the framework of Dynamic Linear Models (DLM). Media advertisements help in brand positioning and creating awareness among consumers. Thus, media investment serves multiple purposes. The second case study is for a leading Alco-Bev brand in which we measure returns from media investment using a two-stage approach - combining DLM and Partial Least Squares (PLS). In our third case study, we will discuss an approach to determine Brand Equity Scores from Google Trends data for e-commerce domain and identify key brand imagery attributes driving equity scores using a Lasso type model.

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