Marketing leaders need ways to effectively compare ROI across geographic markets. Typical schemes to create comparable metrics use market populations or Nielsen ‘tv homes’ as a basis to divide national advertising spending across the markets. However, these methods ignore the geographic profile of a brand, biasing ROI upward in well-established markets and downward in markets with fewer locations.
At in4mation insights, we integrate mix modeling results with a geographic information system (GIS) containing brand-specific customer mobility data. The tool allows us to adjust market-level ROI metrics for the opportunities to buy that are dictated by a brand’s restaurant locations, neighborhood-level population distribution, and consumer behavior.
Adjusting for population attributes of a restaurant brand’s location profile ensures that national media spending is not over-allocated to growth markets leading to deflated ROI. A population-adjusted ROI metric makes dollars comparable across a brand’s established and growing media markets.
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