WWBR Q3 2018

8 WORLDWIDE BUSINESS REVIEW / Q3 2018 , Established in 2012, Marketscience Consulting specialises in building bespoke economic models to provide a complete understanding of the consumer demand underlying the client’s business. The model outputs form the basis of a wide variety of business solutions, ranging from quantification of marketing ROI, optimal price setting and allocation of marketing resources through to demand forecasting and brand growth strategy. Operating from its base in London, Marketscience is in its sixth year of business and continues to achieve extensive success. This is due not only to high-quality results but the ability to set itself apart from its competitors in three key areas: - All model solutions are based on innovative research conducted by the strategic leadership team. For example, the evolutionary baseline approach to the marketing mix model is based on published work by Peter Cain, and represents a coherent framework for accurate quantification of short and long-term marketing effects. This has been applied across products, brands and categories for a wide range Marketscience Consulting is an award-winning independent consultancy specialising in advanced econometric modelling, statistical analysis and bespoke advice on traditional and digital marketing investments. We profiled the firmand spoke toManaging Director, Dr. Peter Cain as we look to explore the secrets behind his and the company’s success. Maximising Business Performance of clients to evaluate ROI and aid optimal allocation of marketing resources. - The team are open and consultative at each step of the project process, revealing details of modelling outputs and fully integrating client input. This is important as the Marketing analytics sector is often seen as a black-box and shrouded in mystery. - The firm conducts on-site model training programs and provides software platforms that allow clients to build their own models and optimisations – either independently (DIY) or in joint consultation with Marketscience. In an age where analytics is increasingly brought ‘in-house’ due to either data security or strategic importance requirements, this unique approach represents a true differentiator. The Marketscience customer base is varied and covers many sectors including FMCG, retail, online gaming, online travel booking, airline, financial services and consumer electronics. With an emphasis on flexibility, the company does not deal in one-size-fits-all solutions but provides bespoke models tailored to the client’s specific business needs. To this end, initial consultation and data landscaping are an integral part of each engagement. Marketing analytics is a constantly evolving academic and commercial discipline, and Marketscience innovates accordingly. A current development focus is on model solutions that combine granular online attribution analytics with more aggregated marketing mix modelling. There is a general conception that this has already been solved but the team at Marketscience believe this is far from the case. “The core of the issue is the need to measure the sales impact of inherently micro- focused digital media, alongside more macro-oriented traditional advertising” Peter explains. “Consequently, any analytical approach that aims to incorporate both elements inevitably involves a degree of data aggregation or disaggregation depending on whether analysts adopt a macro or a micro route”. “Highly disaggregated approaches are problematic for two reasons. Firstly, the growing use of multiple online platforms has led to an increasing inability to obtain consistent user-identifiers. Secondly, in the absence of single-source panel information, the impact of traditional market-level media is notoriously difficult to measure at granular levels. Aggregated 1805WW02 approaches can help resolve both problems by consolidating across consumers, facilitating the estimation of market-level factors and capturing the sum of individual actions across platforms. However, aggregation brings its own problems. Consequently, the search for an optimal combined solution is still very much open.” Overall, there are exciting times ahead for Marketscience Consulting, as Peter and the team look to capitalise on the company’s recent success. As such, they are currently scaling up operations across the US and India via an exclusive collaboration with Truesight Consulting - another leading independent analytics group sharing the same core principles of academic rigour and transparency. This partnership will facilitate an expansion of its marketing analytics training program, helping push through the next generation of its modelling platform by combining the power of dynamic baseline methods with the scale of high dimensional Hierarchical Bayesian techniques. With multiple enterprise engagements and as a preferred partner solution for some of the leading global consultancies, the partnership is ready to drive the greater use and deployment of marketing analytics for business.