Abstract
Nowadays, a big number of various math models of advertising exists, however all of them describe only specific effects of advertising influence, thus, considering most modern advertising campaign utilize multiple ad channels for different purposes and are highly integrated, systematic and complex in its structure, math modelling of such campaigns remains a challenge for practitioners. As for today, there is no such framework that would be flexible and effective enough in solving tasks of advertising campaigns management. Hence, a framework of generalized advertising modelling and illustrations of its practical realizations for particular real cases would be a valuable addition to the research of the topic as well as a useful manual for practitioners. An objective of the current article is to illustrate various cases of generalized advertising model realizations, explain framework and algorithm of building model’s realizations for particular integrated marketing campaigns and show economic effects of proposed approach on an example of a real enterprise. Proposed framework is especially focused on modelling sequential and structured customer journeys and utilizing its systematic effects which become a modern standard of advertising activities among the enterprises. Article also includes considerations of modelling modern marketing tools such as WOMM and its integration into advertising campaigns utilizing more conventional tools which is illustrated for a first time in research literature on the topic. Proposed model supports taking into account indirect advertising tools which are not resulting in purchase directly, however, build awareness or move customers towards a purchase within a customer journey in any other way. Present research uses such methods as synthesis, generalization, case study and a real-field experiment. Results of this research can be useful for marketing practitioners as a guidance for building math models of bespoke advertising campaigns. Provided guide also shows how to turn built model into an optimization one and use it as a support for budgeting decision making process. Cases of practical application of proposed guide show improvement of profitability of advertising campaign ranging between 3.6% and 30% percent depending on market peculiarities.
Highlights
Research in fields of psychology, mass communication and the theory of economic decision making defined and formalized strong links between sales and advertising and described different effects of advertising influence
Modern information technologies have made possible gathering big data sets which describe consumers’ behavior in conjunction with advertising impact. (Ostrianyn, Dynamic budgeting of an advertising campaign, 2017) All that prerequisites have enabled complex and integrated advertising campaigns which are no longer a simple set of various channels distributing the same advertising message, but a system of different advertising tools which can be fine-tuned towards the goal of making customers purchasing advertised goods and services
Most related works include those of reconsidering classic AIDA linear marketing model by adding more steps to it such as (Sukma Wijaya, 2012); developing a theoretical framework of social media advertising model as a part of Integrated Marketing Communication (Ahmed & Mustafa Raziq, 2017); considering hybrid marketing mix within integrated marketing communications (Naumovska & Blazeska, 2016); approaching multichannel, multi-audience communication (Key & Czaplewski, 2017); proposing customer-integrated marketing communication (Finne & Grönroos, 2017)
Summary
Research in fields of psychology, mass communication and the theory of economic decision making defined and formalized strong links between sales and advertising and described different effects of advertising influence. Considering all of that it appears to be relevant and needed to come up with such a framework which would allow advertising practitioners to build custom modelling realizations of campaigns utilizing new advertising tools as well as considering those tools as parts of a system. Present article explains main concepts of the generalized model, describes the process of assembling its practical realizations as a sequence of building a conceptual model of a campaign for the particular set of advertising tools and desired customer journey at first, descriptive and, optimization budgeting math model of a planned campaign. Article features illustrations of suggested steps and provides economic results of real-field application of a model assembled according to the proposed guide
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