A Statistical Approach to Pick the Most Impactful Advertising Channel for Product Marketing
In the wake of ZMOT (Zero Moment of Truth) it becomes pivotal for any product company to choose the most appropriate advertisement channel for the promotion of their products. This not only helps the organizations to maximize their chances of creating the best first impression but will also help them to be discovered by today’s tech savvy consumers.
Today we will talk about a very interesting method of performing a statistical analysis to pick the most appropriate Ad channel to introduce your product or service to your potential customers. This analysis is called as Simple Correspondence Analysis which is very simple and straight forward.
This analysis can help to isolate specific Ad Channel corresponding the most to a particular product that was sold to a potential customer.
So let’s get started!!!
What do we need?
We need historic data which tells us which product was sold via which channel and how many times. So, for the purposes of this tutorial I created a dummy data set which shows the count of a particular product being sold post its add on a particular channel.
Sep 1: Get Data
Step 2: Start “The Data Crunching” (I used Minitab to perform this analysis)
Go To Stat
In Stat select Multivariate
Within Multivariate Select Simple Correspondence Analysis
Once in the Simple Correspondence Analysis Console is up. Start putting in the stuff
Also Click on “Graphs” and check the box labeled “Symmetric plot showing rows and columns”
Once all the options are selected Minitab creates the following plot:
Looking at the plot it is pretty evident that majority of the products, Product 1,4,5 tend to associate pretty nicely with Social Media (positioned close to each other) and Product 3 & 2 are more closely related to Paper Ads and Television.
This gives the business a much better understanding of the potential sale success associated to a particular ad channel and positions the organization much better to know how their consumer reacts to a particular ad channel.
Defintion of Minitab can be found here – Minitab
Link: A Statistical Approach to Pick the Most Impactful Advertising Channel for Product Marketing