Introduction

The call for accountability in marketing has been growing over recent years to justify total investments in the area. Furthermore, to allocate budgets across different marketing channels, managers have been trying to better understand their contribution to sales. To model the impact of marketing on sales, time-series approaches have been proven to be successful. However, Allergan’s experience and academic research shows that marketing attribution models are challenging as the complex relationships between variables need to be identified and model structures need to be defined. […] This is a very cumbersome, manual process, which takes weeks or even months to accurately define even just one marketing attribution model for one brand, given that companies usually have a broad product/brand portfolio or different customer segments to analyze. But there is good news! New AI algorithms and techniques cover those weaknesses, such as Gradient Boosted Machines (GBMs) and Shapley values that make marketing mix modelling approaches more accurate and scalable for a higher number of stores, brands, products, or customer segments.

#marketing-analytics #marketing #data-science #budget-allocation #ai