It essentially means looking at your media landscape through data and making all your decisions based on this data. It all begins with collecting data and creating insights. ‘Simply’ creating insights is already of great added value to organizations, as it provides the necessary transparency in the media landscape. All of a sudden you are able to tell how much value media channels contribute relative to your investments in these channels.
For which goals (KPIs) can you optimize media?
Depending on your goals, you can optimize based on different KPIs. For example: brand KPIs, reach, impressions or performance-based metrics such as sales, revenue or website traffic.
Do you need attribution to optimize media?
Attribution is used to map the value of customer journeys. Whether or not you need attribution to optimize the investment depends on your goal.
If your goal is performance-based, such as generating additional conversions or increasing revenue, then I would say “yes, you need an attribution model to calculate what the generated value in conversions or revenue is for each investment.”
At the same time media is used for branding. You absolutely don’t want to evaluate the effectiveness of this media activity based on conversions or revenue. The goal is usually completely different: you might want to reach a certain target group x amount of times to stimulate brand awareness. Although you don’t necessarily require attribution to steer on reach or brand KPIs, steering should also be data-driven. We often see that comparing the reach of online and offline media channels already provides many insights. It allows you to see which media, for example, you need to use to reach a young target group that you aren’t reaching with TV. This allows you to determine an optimal media mix to reach your target group.
How often can you optimize investments?
In general, you can optimize as often as you want.
Make sure your optimization process fits your internal decision-making processes. This ensures you analyze the most urgent questions and that advice and optimizations are applicable. For example, the following moments are important during the year:
Year plan: make sure to carry out important strategic-level optimization for the coming year. These can be big decisions concerning large media budgets and negotiations and optimizing them can be of big impact.
Campaigns: there are cycles of media campaigns with specific goals. Make sure to ask the right questions in the early stages of each campaign to ensure you can collect the right data and use it to answer these questions during and after the campaign.
Always on: a continuous basis for analyses and optimization, even on a daily level.