Media planning across brand structures

Kate Cox
MPG Media Contacts

Econometric modelling can be used to make incremental improvements to a brand range's media schedule

This article looks at case studies using econometric modelling as a major input into the media planning process across brand portfolios. It outlines successful case histories that use this technique to drive the total portfolio media plan, playing a key role in budget setting across brands, channel choice and phasing between brands. It is a powerful tool because it helps understand the interactions across a portfolio – the direction of effects of master brands on sub-brands, and the best media for the widest halo effects.

Brand portfolio econometric modelling works best for businesses producing healthy sales and profits. It is much less useful at guiding declining brands in stagnating markets, due to its reliance on using past performance to forecast the future. This situation requires radical reinvention to a communication strategy and econometrics does not support radicalism.