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Applying a delta opportunity index to paid media budget planning

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This paper addresses the problem of paid media budgeting and forecasting using a data-driven approach. As there is no specific analytic framework to estimate advertising investment, such calculations tend to be ad hoc in nature. This paper presents the delta opportunity index as a potential approach to paid media budgeting. The technique combines internal client analytics data as a proxy for the offer variable and external data such as search engine query volumes as a proxy for the demand variable. From there, the combined data sources are standardised as ratios to enable the calculation of the delta opportunity index. The final output provides a media budget distribution estimate to be used by media planners and marketers.
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Keywords: analytics; digital advertising; forecasting; marketing ROI; media planning; paid media; search engine marketing

Document Type: Research Article

Publication date: January 1, 2019

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  • Applied Marketing Analytics is the major new professional journal publishing in-depth, peer-reviewed articles on all aspects of marketing analytics. Guided by an expert Editorial Board each quarterly 100-page issue - published both in print and online - features detailed, practical articles written by and for marketing analytics professionals on innovative thinking, strategies, techniques, software and applied research showing how major brands are collecting, interpreting and acting on marketing analytics, both around the world and across varied digital and non-digital marketing channels. Learn how to measure the effectiveness of your marketing initiatives more accurately, how this compares to your competitors, identify gaps in your marketing analytics program and what metrics that support sound marketing decision making - and add to the bottom line.
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