Consulting & Strategy · ZS Associates

Marketing Mix Optimisation

$2M saved on a $25M promotional budget.

The stakes

A BioPharma client split a $25M promo budget across TV, rep calls and digital, most of it on TV.

The job

Advise where each next dollar should go, using a promotional response curve for every channel.

How

  1. 01

    Model

    Fitted a response curve per channel: revenue for every extra dollar of spend.

  2. 02

    Rank

    Each next $1M goes to the channel where it earns the most revenue.

  3. 03

    Shift

    TV flattened first, so money moved to rep calls, then digital.

  4. 04

    Save

    The optimised mix matched the old revenue on $23M instead of $25M: $2M saved.

$2M
Saved for the client
$25M
Promotional budget reallocated
3
Channels rebalanced: TV, rep calls, digital