How to simulate advertising
Posted: Wed Dec 18, 2024 3:46 am
I think many people who are running ad distribution have worried about how much results they can get from expanding their budget. Specifically, they have the following concerns:
How far can you extend your current advertising strategies and still achieve advertising results?
How much delivery should I allocate to other initiatives?
What is the most efficient budget for maximizing acquisition efficiency and conversions?
There are many difficult points to overcome in trying to solve these problems, such as the need for specialized knowledge of programmatic advertising and the need to consider variables that may affect acquisition efficiency in the past and future. In
this article, we will explain how anyone can easily analyze whether their advertising budget is appropriate without specialized knowledge.
This is a method to easily create a simulation phone number lookup indonesia of budget and acquisition efficiency using only Excel , with the aim of giving you an opportunity to think about appropriate advertising budgets even if you don't have any clues yet .
>>Download the document set (service documents and case studies) to learn about Ollie's
Table of Contents [ Hide ]
Logic of analysis: Logarithmic trendline
Preparations required for analysis
Analysis flow
1. Enter advertising data into an Excel spreadsheet and create a graph
2. Conduct analysis based on the calculated function formula
3. Determine your advertising budget based on your company’s circumstances
Disadvantages of this analysis and cases where it is better to avoid using it because "anyone can easily create it"
Case 1: When the performance data contains many abnormal values or outliers
Case 2: When a major environmental change has occurred between the past and the present
Case 3: When there is a large discrepancy between past performance data and future expected data
summary
Logic of analysis: Logarithmic trendline
This time, we will perform an analysis using a logarithmic trend line based on ad delivery performance .
A trend line is a line or curve drawn as close as possible to the "multiple data" displayed in a scatter plot, and is an analytical method that can be used to clearly understand the trends in the data distribution of a scatter plot or to make future predictions when no data is available.
There are several types of trend line, but this time we will introduce an analysis method using a logarithmic trend line.
The logarithmic approximation curve
is suitable when the rate of change of the characteristic data increases or decreases rapidly and then levels out (becomes constant).
Generally, programmatic advertising follows the following progression, and since this trend coincides with the characteristics of a logarithmic approximation curve, it is used as an analytical method.
1. When the investment amount is small relative to the market, increasing the investment amount will increase the number of acquisitions in a pseudo-linear manner.
2. As the investment amount increases, delivery to the most efficient target becomes saturated, and acquisition efficiency gradually decreases.
3. Eventually, a stage will be reached where increases or decreases in investment amount will not affect increases or decreases in the number of acquisitions.
How far can you extend your current advertising strategies and still achieve advertising results?
How much delivery should I allocate to other initiatives?
What is the most efficient budget for maximizing acquisition efficiency and conversions?
There are many difficult points to overcome in trying to solve these problems, such as the need for specialized knowledge of programmatic advertising and the need to consider variables that may affect acquisition efficiency in the past and future. In
this article, we will explain how anyone can easily analyze whether their advertising budget is appropriate without specialized knowledge.
This is a method to easily create a simulation phone number lookup indonesia of budget and acquisition efficiency using only Excel , with the aim of giving you an opportunity to think about appropriate advertising budgets even if you don't have any clues yet .
>>Download the document set (service documents and case studies) to learn about Ollie's
Table of Contents [ Hide ]
Logic of analysis: Logarithmic trendline
Preparations required for analysis
Analysis flow
1. Enter advertising data into an Excel spreadsheet and create a graph
2. Conduct analysis based on the calculated function formula
3. Determine your advertising budget based on your company’s circumstances
Disadvantages of this analysis and cases where it is better to avoid using it because "anyone can easily create it"
Case 1: When the performance data contains many abnormal values or outliers
Case 2: When a major environmental change has occurred between the past and the present
Case 3: When there is a large discrepancy between past performance data and future expected data
summary
Logic of analysis: Logarithmic trendline
This time, we will perform an analysis using a logarithmic trend line based on ad delivery performance .
A trend line is a line or curve drawn as close as possible to the "multiple data" displayed in a scatter plot, and is an analytical method that can be used to clearly understand the trends in the data distribution of a scatter plot or to make future predictions when no data is available.
There are several types of trend line, but this time we will introduce an analysis method using a logarithmic trend line.
The logarithmic approximation curve
is suitable when the rate of change of the characteristic data increases or decreases rapidly and then levels out (becomes constant).
Generally, programmatic advertising follows the following progression, and since this trend coincides with the characteristics of a logarithmic approximation curve, it is used as an analytical method.
1. When the investment amount is small relative to the market, increasing the investment amount will increase the number of acquisitions in a pseudo-linear manner.
2. As the investment amount increases, delivery to the most efficient target becomes saturated, and acquisition efficiency gradually decreases.
3. Eventually, a stage will be reached where increases or decreases in investment amount will not affect increases or decreases in the number of acquisitions.