Creatives & ROI
Recent studies have shown that creative quality is the most important factor in the success of advertising campaigns. Marketing mix modeling (MMM) has become standard practice for most companies involved in advertising, providing insights into ad effectiveness across various channels. MMM allows marketers to identify which inputs are most contributing to sales, without relying on personal information for analysis. According to Nielsen, creativity drives 56% of a campaign's sales ROI, and Google reports that 70% of a campaign's success is determined by the creative. Meta's open-source MMM code, Robyn, allows for the measurement of creativity's impact on sales. Collaborations with companies like Jaeger-LeCoultre have demonstrated the effectiveness of incorporating creative quality scores into MMM analysis, leading to more informed advertising decisions. Short video ads, particularly on Instagram, have been found to produce a higher ROI, and advertising on Facebook and Instagram has the best long-term impact among all social media channels.
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