Learn how this leading hospitality brand transformed and revolutionized its media decisions. The client, who was focused on achieving optimal allocation of their online advertising budget with the aim of maximizing booking, needed a solution away from a last-touch attribution model. Through a combination of a multi-touch attribution method, Markov chain modeling, and saturated curve fitting, the brand was able to observe an increase in conversions while reducing costs per booking.
A significant hospitality Client with a budget of $2.8billion was focused on achieving an optimal allocation of their online advertising budget to paid media channels, all with the aim of maximizing the number of bookings.
The Client's current media decisions relied heavily on a last-touch attribution model, which tended to overestimate the impact of organic media. However, the last-touch attribution approach failed to consider the significance of early and middle-stage interactions and the drivers behind conversions. Furthermore, the simulation and optimization based on the last-touch model proved to be underdeveloped, as it did not factor in saturation effects.
Faced with these challenges, the Client embarked on a search for an effective solution that could improve their advertising approach.
Through Blend's expertise and guidance, the Client significantly improved their budget allocation strategy by implementing a series of innovative approaches:
1) Multi-Touch Attribution Method
· The development of a multi-touch attribution method enabled a comprehensive insight into customer journey analytics that accounted for various touchpoints.
2) Markov Chain Modeling
· The integration of Markov Chain Modeling was employed to gain a better understanding of the relationship between media modeling and spending, factoring in diminishing returns.
3) Saturated Curve Fitting
· Facilitated the development of a simulation and optimization platform for scenario planning and budget decision-making.
The Client also developed Non-Linear Constrained Programming, contributing to the multifaceted toolkit that Blend360harnessed to deliver transformative outcomes for the Client.
Under Blend's expert guidance, the devised solutions efficiently delivered incrementality analysis with multi-touch attribution for the Client. This strategic approach yielded additional benefits, leading to an increase in conversions and reductions in cost per booking.