payback analysis was created and executed to identify the impact
of a $100 M advertising campaign.
A financial services company
invested $100M into a national advertising campaign. The CEO wanted to know if it was marketing
money well spent.
After careful consideration and
review with leadership, it was determined that there were several possible ways
to calculate the advertising payback.
A practical approach was selected
using their primary marketing vehicle – direct mail. Response rates were calculated prior to the
advertising campaign and after the campaign began, and as the campaign matured. The lift in response rates was isolated and
used to calculate the difference between pre and during campaign, branded vs
unbranded, exposed vs not exposed, and controlling for offer type and FICO
band. Ultimately, it was determined that the $100M investment was beneficial to