Innovation Management Wisdom

Whyze Group Introduces Management Innovation: Advertising ROI Model

October 7th, 2008

A mortgage bank was planning several marketing campaigns, one of which included a large investment in radio advertising promotion.  Whyze Group developed a marketing ROI model to prioritize marketing investments and help executives determine the optimal investment in radio advertising. 

We projected how many prospects would be shopping for loans during the radio advertising flight.  Media buyers told us what portion of households would be exposed to the ads and we estimated high and low response rates. 

Whyze Group collaborated with the chief financial officer.  We built a model that included selling expenses, anticipated product mix, costs of goods (loans) sold, and the anticipated lift in sales. By running various scenarios through the model, we concluded that the bank’s net profit potential would be far higher by significantly increasing its radio buy.  Bank leaders agreed.

Four months after the end of the campaign, we measured the results. The bank had increased its market share and net profits by approximately 20% over the previous year’s timeframe.

Entry Filed under: Qualitative Research Case Studies


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