Marketing-mix modeling helps AT&T boost its ROI from TV

AT&T, the wireless carrier, wanted to gain in-depth insights into the ROI from its three main forms of television output: cable, broadcast networks and sponsorship.

How marketing-mix modeling helped AT&T boost its ROI from TV

Geoffrey PrecourtWarc

For years, marketers have assumed that TV sponsorship programs are a cost-effective way of keeping a message in front of highly-targeted audiences.

A new AT&T Wireless study, however, challenges that notion. While allowing that sponsorship may, in fact, drive more short-term sales than broadcast network or cable, the wireless carrier contends that the premiums demanded by such initiatives may be higher than their effectiveness would justify.

Moreover, by reallocating its television advertising dollars through granular media-marketing modeling, the company has been able to increase the efficiency of...

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