AI and analytics for better marketing performance
summary
Claims that advertising budgets are reverse-engineered into four methods—baseline spending, adaptive experimentation, advertising-to-sales ratio and competitive parity—using econometric analysis on eight brands across three categories. Finds brands mix heuristics and analytics: yogurt brands run >90% heuristics, beer leaders split rules, while adaptive experimentation explains 41% of one auto brand’s ad decisions and 20% of another’s. A simulation shifting half of heuristic spend to experimentation lifts sales ~1% for mature CPGs but +23% and +11–12% for two emerging auto brands.
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chapters (14)
- 0:00Intro
- 0:13Al is about "Human-like" Intelligence
- 2:31We Need a New Division of Labor
- 4:01The New Marketing Ecosystem
- 5:06Top Use Cases for Al in Marketing
- 5:50Harness the Power of Data and Analytics for Marketing Performance
- 8:04The Anatomy of the Advertising Budget
- 10:58Why not do Field Experiments?
- 12:02Adaptive Experimentation
- 13:25The Budgeting Decision Heuristics
- 19:02Time Varying Ad Effectiveness w/ Uncertainty
- 20:16Implications: Ad Budget Decomposition
- 23:11Is More Experimentation Always Better?
- 25:47What Have We Learned?
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