The Right Budget Decision with AdClear
AdClear’s Media Forecaster introduces a new dimension of budget planning: our product allows for the prediction of the effects of budget variations on channels and their most important metrics such as Return on Investment (ROI) or Cost Per Order (CPO). For the first time, advertisers have the ability to simulate the effects of budget allocation on the most important metrics prior to actual implementation.
The technology is based on the Media Forecaster Algorithm, which is built on client-specific, data- driven attribution. AdClear calculates each channel’s and each marketing measure’s share based on causation, and enriches attribution results with cost data, allowing for a clear view of channel performance and scalability.
How will my online revenue change if I increase my investment in display marketing? How will my cost per conversion change if I reduce search engine marketing and increase my affiliate marketing budget? These and other questions can be answered in the Media Forecaster module in AdClear’s front end.
Advantages for the advertiser
The interactive prediction module in AdClear’s front end provides sliders for setting various budget allocation variations. The input is applied directly to a channel-specific elasticity curve. For each selected variation, the system computes a prognosis of individual channel metrics in addition to aggregated totals.
Simulation of Scenarios
By selecting a target for analysis, we can simulate three basic scenarios:
Simulation of Revenue/Costs:
Shows the change in revenue based on the budget allocations to individual channels.
What will be my total revenue if I increase the budget for the SEA channel by 2.000 Euros?
Simulation of CPO/Costs:
Shows the change in CPO based on the budget allocations to individual channels.
What will be the changes to my total CPO if I double my budget for the Affiliate channel?
Simulation of Revenue/CPO:
Shows the change in revenue based on CPO.
What will be my revenue with a CPO of 20 Euros in my main channels?
1. Build tracking data:
AdClear tracking should have been integrated and verified for the past six months.
2. Deployment of the Superior Attributors:
Compute transactions based on AdClear’s user- driven and dynamic attribution.
3. Cost data:
For the computation of the statistical model, our system needs cost data for the main channel-level (SEA, Display, Affliate, Newsletter, etc) for the past six months.