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Through marketing mix modeling, L’Oreal uncovers YouTube’s ability to deliver sales
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Problem

“Digital, especially YouTube, has become a big part of our business drivers. We are happy to see that we are not only pushing awareness but also driving sales, which is key for every brand.” – Marwan Moubarak, Marketing Manager Middle East, L’Oreal

Investing in measurable and efficient platforms is top of mind for all FMCG players, and L’Oreal is no exception. With regards to media, their main objective is to be able to optimise media buys across online and offline. With this in mind, they needed to understand which marketing levers were playing the greatest role in generating sales, so they partnered with Ekimetrics to conduct a media mix modeling study on Elvive, one of their key brands in the hair care category.

Goal

  • Measure different media channels’ ROI and impact on sales
  • Understand how to optimize media across online and offline

Strategy

Collected over three years’ worth of sales, media spend data and macro data on haircare category to reflect calendar effects, price levels, competitor media, competitor store openings and more

Used data to build a marketing mix model that separated different media channels’ impact on sales

Result

YouTube delivered better ROI than any other online or offline video platform, with Google Preferred driving particularly strong results

Always-on campaigns provided greater sales impact than short bursts

Search drove by far the highest ROI compared to all other platforms

“Digital, especially YouTube, has become a big part of our business drivers. We are happy to see that we are not only pushing awareness but also driving sales, which is key for every brand.” – Marwan Moubarak, Marketing Manager Middle East, L’Oreal

Investing in measurable and efficient platforms is top of mind for all FMCG players, and L’Oreal is no exception. With regards to media, their main objective is to be able to optimise media buys across online and offline. With this in mind, they needed to understand which marketing levers were playing the greatest role in generating sales, so they partnered with Ekimetrics to conduct a media mix modeling study on Elvive, one of their key brands in the hair care category.