Working with the vast quantities of data collected
and analyzed through the attribution process, you
can assign an "elasticity" to every business driver
you've measured, from TV advertising to search ads
to fuel prices and local temperatures. (Elasticity is
the ratio of the percentage change in one variable
to the percentage change in another.) Knowing the
elasticities of your business drivers helps you predict
how specific changes you make will influence particular outcomes. If your TV ads' elasticity in relation to
sales is .03, for example, doubling your TV ad budget
will yield a 3% lift in sales, when all other variables
remain constant. In short, analytics 2.0 modeling reveals how all driver elasticities interact to affect sales.
(See the exhibit "How Ads Interact to Boost Sales f )
Working with the vast quantities of data collected
and analyzed through the attribution process, you
can assign an "elasticity" to every business driver
you've measured, from TV advertising to search ads
to fuel prices and local temperatures. (Elasticity is
the ratio of the percentage change in one variable
to the percentage change in another.) Knowing the
elasticities of your business drivers helps you predict
how specific changes you make will influence particular outcomes. If your TV ads' elasticity in relation to
sales is .03, for example, doubling your TV ad budget
will yield a 3% lift in sales, when all other variables
remain constant. In short, analytics 2.0 modeling reveals how all driver elasticities interact to affect sales.
(See the exhibit "How Ads Interact to Boost Sales f )
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