{"id":38701,"date":"2022-10-28T11:40:29","date_gmt":"2022-10-28T09:40:29","guid":{"rendered":"https:\/\/clicktrust.be\/blog\/geen-onderdeel-van-een-categorie\/introducing-lykta-our-marketing-mix-modeling-offering\/"},"modified":"2023-02-11T20:53:53","modified_gmt":"2023-02-11T19:53:53","slug":"introducing-lykta-our-marketing-mix-modeling-offering","status":"publish","type":"post","link":"https:\/\/clicktrust.be\/nl\/blog\/clicktrust-nieuws\/introducing-lykta-our-marketing-mix-modeling-offering\/","title":{"rendered":"Introducing LYKTA, our Marketing Mix Modeling offering"},"content":{"rendered":"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; top_padding=&#8221;50&#8243; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; advanced_gradient_angle=&#8221;0&#8243; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221; gradient_type=&#8221;default&#8221; shape_type=&#8221;&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]I\u2019m sure you\u2019ve heard of \u201cthe death of the cookie\u201d by now. It\u2019s hard to miss. Even people outside our industry are aware that times are a-changin\u2019.<\/p>\n<p>Apple is turning privacy into a competitive advantage and is gearing up to take maximum advantage with its own advertising offering. Google and Facebook are scrambling and have rolled out solutions like Consent Mode, Enhanced Conversions and the Conversion API. Did we implement them? Sure. Did we actually see an impact? Well\u2026 No.<\/p>\n<p>Even with all possible solutions implemented, measurement still looks like this.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-34523 size-full\" src=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image2-e1666962121687.png\" alt=\"\" width=\"600\" height=\"421\" srcset=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image2-e1666962121687.png 600w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image2-e1666962121687-300x211.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>Why? Because they\u2019re tiny band-aids for Titanic-sized problems:<\/p>\n<ul>\n<li>Cookie-consent popups are massively decreasing the number of people we can track<\/li>\n<li>Every year, households own more and more internet-capable devices<\/li>\n<li>Browser Tracking Prevention caps 3rd party cookie lifetimes and blocks fingerprinting<\/li>\n<li>App Tracking Transparency decreases the ability to track customer journeys across different apps on Apple devices<\/li>\n<li>Customer Journeys are longer than the maximum conversion window settings<\/li>\n<li>Cookies have never been particularly good at measurement (read more on this in the survey we did with Ipsos)<\/li>\n<li>Offline channels like radio or TV are not included<\/li>\n<li>Internal marketing variables like promotions, product availability or price updates are not included<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Some problems described above aren\u2019t new and have always made attribution difficult. Looking beyond click-based or impression-based attribution models has always been absolutely essential for businesses with long customer journeys, or even to just properly value upper-funnel campaigns. For these hard-to-track cases, some of the go-to methods were:<\/p>\n<ul>\n<li>Giving monetary value to soft conversions that have a causal relationship to the hard conversion, and optimizing campaigns on these soft conversions, knowing the hard conversions will follow sooner or later<\/li>\n<li>Building holistic dashboards that don\u2019t depend on cookie-based attribution<\/li>\n<li>Just putting common sense before DaTa DrIvEn MaRkEtIng \ud83d\ude42<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>These methods allowed us to break free from the elevated cost-per-clicks that are considered normal at the bottom of the funnel. We could now also target a much larger addressable audience, namely everyone that hasn\u2019t yet expressed an interest in their search and browsing behaviour. It actually allowed performance marketers to build brands, with aspirational video creatives.<\/p>\n<p>Great, we were no longer playing the game of the SEA expert that can only think in binary code.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-34524 size-full\" src=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image10.gif\" alt=\"\" width=\"498\" height=\"209\" \/><\/p>\n<p>&nbsp;<\/p>\n<p>Media plans created with common sense outperform media plans that are created with just click-based attribution insights. It\u2019s that simple. At least, when looking at the right metrics. But, there was no way to really validate this holistic approach. No way to take it to the next level, to optimize it further.<\/p>\n<p>This is where Marketing Mix Modelling comes into play. MMM isn\u2019t new. Some advertisers have been doing it for years, usually outsourcing it to specialized data science firms. It was just very costly, and in our experience, these firms don\u2019t really understand digital channels well enough for them to be able to give good advice. They\u2019re just very smart statisticians. We\u2019ve seen cases for our clients for which the main recommendation of such a firm was to push more budget to branded paid search, which is just silly.<\/p>\n<p>Luckily, the analytics discipline of MMM has become more accessible because of 3 big trends:<br \/>\nA vast open-source community has emerged and qualitative MMM frameworks are available, free of charge. Some of these frameworks are even developed by GAFA themselves.<\/p>\n<p>Cloud computing has evolved to a point where the feasibility and costs involved to have a data warehouse just for media, are no longer obstacles. Python and R can also be applied at scale for data governance in the cloud.<\/p>\n<p>Scientific rigorousness in our digital marketing. Our industry has matured in terms of usage of statistical processes &amp; algorithms for media planning.<\/p>\n<p>These developments made us comfortable enough to take the plunge. We decided to launch our spin-off LYKTA, a toolkit for marketing measurement. Included in the offering are:<\/p>\n<ul>\n<li>Data storage &amp; management<\/li>\n<li>Business intelligence, dashboards &amp; reports<\/li>\n<li>Marketing mix modelling, drive to web modelling, advanced AB tests<\/li>\n<li>Multi-moment strategy, consultancy<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>This is how it works:<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-34526 size-full\" src=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image7-e1666962199979.png\" alt=\"\" width=\"800\" height=\"319\" srcset=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image7-e1666962199979.png 800w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image7-e1666962199979-768x306.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/p>\n<p>MMM relies on data, obviously. The more data and the more variation within the data, the more accurate the model will be. It\u2019s, by the way, not required to have an API connection to your platforms. Simple CSVs can go a long way. First, the key variables and drivers of online and offline sales are identified. Then, machine learning algorithms use regression analysis to forecast sales based on those drivers, resulting in the actual model. With the model, the output reports are created that attribute sales to each driver. The insights from these reports can be used to optimize online spend and marketing activities.<\/p>\n<p>&nbsp;<\/p>\n<p>The examples below will clear up what is truly essential: What can I expect in terms of output?<\/p>\n<div id=\"attachment_34527\" style=\"width: 579px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-34527\" class=\"wp-image-34527 size-full\" src=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image5.png\" alt=\"\" width=\"569\" height=\"568\" srcset=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image5.png 569w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image5-300x300.png 300w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image5-150x150.png 150w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image5-100x100.png 100w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image5-140x140.png 140w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image5-500x500.png 500w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image5-350x350.png 350w\" sizes=\"(max-width: 569px) 100vw, 569px\" \/><p id=\"caption-attachment-34527\" class=\"wp-caption-text\">Modelled cost per soft conversion. YouTube has the lowest, which isn\u2019t something you usually see. It\u2019s because we don\u2019t just look at the conversions coming from website visits that resulted from clicks on the ad, but instead, modelled the full impact of the campaign with MMM.<\/p><\/div>\n<p>&nbsp;<\/p>\n<div id=\"attachment_34528\" style=\"width: 785px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-34528\" class=\"wp-image-34528 size-full\" src=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image3.png\" alt=\"\" width=\"775\" height=\"484\" srcset=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image3.png 775w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image3-768x480.png 768w\" sizes=\"(max-width: 775px) 100vw, 775px\" \/><p id=\"caption-attachment-34528\" class=\"wp-caption-text\">Finding the infliction point of decreasing marginal returns within a channel.<\/p><\/div>\n<p>&nbsp;<\/p>\n<div id=\"attachment_34529\" style=\"width: 610px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-34529\" class=\"wp-image-34529 size-full\" src=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image11-e1666962358118.png\" alt=\"\" width=\"600\" height=\"371\" srcset=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image11-e1666962358118.png 600w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image11-e1666962358118-300x186.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><p id=\"caption-attachment-34529\" class=\"wp-caption-text\">Ideal media mix with % of investment per channel, based on MMM. Just by looking at click-based or even impression-based attribution, Programmatic\/GDN would never receive 22% of the total.<\/p><\/div>\n<p>&nbsp;<\/p>\n<div id=\"attachment_34530\" style=\"width: 610px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-34530\" class=\"wp-image-34530 size-full\" src=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image1-e1666962417911.png\" alt=\"\" width=\"600\" height=\"272\" srcset=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image1-e1666962417911.png 600w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image1-e1666962417911-300x136.png 300w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><p id=\"caption-attachment-34530\" class=\"wp-caption-text\">Modelled cost per sale per channel, which allows a comparison to Amazon Ads, a channel that doesn\u2019t show up in your Google Analytics. It also shows that the investment in branded paid search wasn\u2019t incremental. The same thing for Shopping, it wasn\u2019t incremental because most budget went to branded keywords.<\/p><\/div>\n<p>&nbsp;<\/p>\n<div id=\"attachment_34531\" style=\"width: 810px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-34531\" class=\"wp-image-34531 size-full\" src=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image8-e1666962461253.png\" alt=\"\" width=\"800\" height=\"314\" srcset=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image8-e1666962461253.png 800w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image8-e1666962461253-768x301.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><p id=\"caption-attachment-34531\" class=\"wp-caption-text\">Memorization analysis of the impact of a TV spot on sales. It shows when to ideally launch a new spot: when the effect has faded off.<\/p><\/div>\n<p>&nbsp;<\/p>\n<div id=\"attachment_34532\" style=\"width: 736px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-34532\" class=\"wp-image-34532 size-full\" src=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image4.png\" alt=\"\" width=\"726\" height=\"343\" srcset=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image4.png 726w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image4-300x142.png 300w\" sizes=\"(max-width: 726px) 100vw, 726px\" \/><p id=\"caption-attachment-34532\" class=\"wp-caption-text\">Analysis of contribution to website visits per TV channel. It allows better choices in terms of which TV channels you want to show for the next campaign.<\/p><\/div>\n<p>&nbsp;<\/p>\n<div id=\"attachment_34533\" style=\"width: 810px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-34533\" class=\"wp-image-34533 size-full\" src=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image6-e1666962594901.png\" alt=\"\" width=\"800\" height=\"564\" srcset=\"https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image6-e1666962594901.png 800w, https:\/\/clicktrust.be\/wp-content\/uploads\/2022\/10\/image6-e1666962594901-768x541.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><p id=\"caption-attachment-34533\" class=\"wp-caption-text\">Sales per channel, including Amazon Ads, a channel that doesn\u2019t show up in Google Analytics. Amazon Ads actually had by far the strongest effect on sales.<\/p><\/div>\n<p>&nbsp;<\/p>\n<p>In short, LYKTA helps clients better answer tactical and strategical marketing questions, like:<\/p>\n<ul>\n<li>What is the global ROI of paid media investments?<\/li>\n<li>How many sales would we have if we cut ad spends?<\/li>\n<li>Which media drives the most sales?<\/li>\n<li>What is the ROI per channel?<\/li>\n<li>What is the optimal level of investment?<\/li>\n<\/ul>\n<p>This doesn\u2019t mean you can throw out your existing marketing measurement stack, though. Measurement tools are complementary.<\/p>\n<p>LYKTA is about uniting these roles, in a single platform.<br \/>\nWe\u2019re offering it in 3 packages:<\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li><strong>Drive to Web<\/strong>, including analysis and reporting, for a one-off fee of \u20ac3 000<\/li>\n<li><strong>Advanced AB tests<\/strong>, including planning, buying, analysis and reporting, for a one-off fee of \u20ac5 000<\/li>\n<li><strong>The full MMM packag<\/strong>e, including training sessions, data gathering with your team, the initial model, refreshes of the model based on new data, access to the self-service platform and of course, the 2 packages above, for a yearly fee of \u20ac33 000.<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>Interested? Find out more on <a href=\"https:\/\/www.lykta.be\/\" target=\"_blank\" rel=\"noopener\">www.lykta.be<\/a> or contact them directly at contact@lykta.be.<\/p>\n<p>Or reach out to us, and we\u2019ll help you get started on this journey.[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][nectar_global_section id=&#8221;37416&#8243;][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; 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