35% OPTIMIZATION OF AD BUDGET
TELECOMMUNICATIONS OPERATOR. TURNOVER OF $1.5 BILLION
Prior to the application of the algorithms, the marketing department employed a total of 91 people:
— about 50% were developing local services for b2c and one-time b2b clients in 7 different regions, and then buying local advertising
— sales and ad budgets could not be properly managed due to the difference in the competence levels of remote employees and frequent errors in calculations: sales plans were not fulfilled and the marketing efficiency was not evaluated
— the other 50% of employees were collecting and processing field quantitative and qualitative data.
The use of the algorithms made it possible to plan in detail the sales in each product category - wired communications, mobile communications, television, the Internet - by geography, sales channels and segments (b2b and b2c upselling).
Sources of growth, which, unlike what was before (all hope for advertising!), now consisted of new products (now completely centralized), a trade policy (plus a service policy), and only part of the growth now depended on marketing activity (TM, R&D and ADV). For the first time, the marketing budget was not based on previous periods, but on tasks at hand.
Ad budget was centralized, abandoning local advertising campaigns, since the release of new services and products was now managed from the head office. This allowed the company to reduce the budget by 35% and increase media efficiency by 8 times thanks to the efficient ad buying. And marketing staff was cut by 2 times.