Tom Vladek from Recast walks through how the platform measures incremental ROI and marginal ROI across marketing channels. The demo shows shift curves and saturation curves to help brands understand where their marketing spend actually moves the needle.
Hi, I'm Tom Vladek, co founder of Recast, a media mix modeling platform where the world's most sophisticated brands measure and optimize their marketing spend. Today I want to talk to you about the channel level deep dive on our dashboard. Our customers come to us with a lot of questions about their marketing performance. They want to know, how is my Facebook performing today? How is it performing a year ago? How would it have been performing had we spent more or less? When we spend a dollar today, when am I likely to see that return? What does the shift curve look like now? They're in luck because Recast has a lot of answers. And the channel level deep dive is just that. It is a deep dive into every single channel's performance. Let me walk you through it. The first thing that we do is we start with the channel performance. How has it actually performed for you over time? Now, it's important to note that Recast estimates an ROI for every channel for every day. And so what you're looking at here is a time series of your Facebook prospecting spend and ROI over time. So what this is showing is that spend has sort of oscillated up and down, but ROI here has been consistently increasing. We don't just estimate the roi, we also estimate the marginal roi. So the ROI is the effect of all of the dollars that you spent into the channel, and the marginal ROI is the effect of the last dollar. So if you were to add additional dollars or subtract from the channel, this is the effect that we would estimate. Now, you can see it has a broadly similar shape, but slightly lower. As you spend more into your channel, the marginal ROI is likely to decline. We also estimate the impact. So on January 3rd, you spent $10,000 into the channel. What affected that drive, importantly, the effect that it drove is not all going to happen on that day. It's going to come some days in the future. And so we show that in this impact shifted graph, the performance of the channel isn't the only thing that we estimate. We also estimate, as I mentioned, the shift curves. What these plots are showing is how long it takes for the full effect of the channel to be realized from the day where you spent money into it. Now, you can see that some channels reach 100% very quickly and some take a much longer time. So podcasts would be one of those channels that takes a little bit longer, whereas mailers take substantially longer. Now, we don't just show all the plots together. Of course. Everything with Recast comes with uncertainty. And so if you want to see the individual plots with their error bars included. They're included in the individual plots below. And that's not all. We also show what we call saturation curves, which or how the effect, the ROI and the marginal ROI depend on the level of spend into the channel. So here we have our saturation curves and we have this in a number of different ways. We have impact as you spend more, how much effect will it drive? We have roi. So as you spend more, how will the ROI be affected? And of course also the marginal ROI as well. So we have the option here of including lower funnel effects. What that will do is it will account for the additional spend driven into channels like branded search. Now more people become aware of the brand because you spent on Facebook prospecting and they head on over to Google and search for your brand and clicked on a branded search ad that would be accounted for here both the indirect spend and the indirect effect in these curves. But we have these both combined and if you want to see the associated error with them, you simply see the individual plots. And again the this works on both ROI impact and marginal ROI basis. And of course all of this data is easily available for download. If you have a lot of questions and you want to work with a media mix modeling partner that can put answers at your fingertips, Simply go to getrecast.com and hit book a demo. Thank you very much.
