XICA adds new function to Advertisement Effectiveness Analysis Tool ADVA MAGELLAN to visualize "plateau" of advertising efficiency
This allows for more precise analysis that takes into account the decline in advertising efficiency caused by budget increases
On December 2021, 12, XICA Inc. (Headquarters: Chiyoda-ku, Tokyo; CEO: Yoshiaki Hirao; hereinafter, XICA) implemented a new function (non-linear analysis function) in ADVA MAGELLAN (hereinafter, Adva Magellan) that visualizes the plateau of advertising efficiency (*20) that occurs when advertising is continued. This new function allows companies to visualize the plateau of advertising efficiency, which was difficult to achieve with the previously mainstream linear analysis, and to clarify more accurate advertising effectiveness and optimal budget allocation.
(*1)This refers to the point where advertising acquisition efficiency reaches a plateau, and is also known as saturation.
Background of the new feature implementation
In the midst of the dramatic changes in the environment caused by the COVID-19 pandemic, an increasing number of companies are becoming critical of their advertising investments. Compared to before COVID-19, there is now a need to more accurately grasp advertising effectiveness and optimize advertising investments. Many companies have challenges in grasping advertising effectiveness, but few companies are able to accurately grasp the impact of advertising effectiveness "hitting a plateau," which has been one of the factors preventing companies from optimizing their advertising investments.
XICA provides Adva Magellan, Japan's No. 2 advertising effectiveness analysis tool (*170), and has a track record of analyzing over XNUMX companies, mainly large corporations. Based on past analytical knowledge and customer requests, we have developed a function (non-linear analysis function) that visualizes the impact of advertising effectiveness reaching a plateau when advertising is continued.
Business challenges that can be solved with new features
By utilizing this new function, it becomes clear that the performance efficiency is deteriorating when advertising is continued. In addition, it is possible to analyze the change in advertising effectiveness according to the amount of each advertisement, and to predict the impact of each advertisement on performance with greater accuracy. As a result, it becomes possible to know the most efficient advertising investment allocation for companies.
New function (nonlinear analysis function) implementation example
A major beverage manufacturer that introduced the new function (non-linear analysis function) on a test basis faced the challenge of not being able to accurately understand the impact of different advertising media, such as TV commercials and digital ads, when it comes to saturation.
As a result of using this new function, we saw an improvement in ROI for all measures except for display ads. This is thought to be the result of advertising results that were underestimated in the previous analysis (linear analysis) being more optimally evaluated by the nonlinear analysis of the new function.
XICA will continue to implement various functions into its services that will help optimize advertising investments, thereby contributing to the optimization of corporate advertising investments and maximizing sustainable sales.
About Magellan
Magellan is Japan's No. 1 (※1) integrated on-off analysis tool that quantifies the impact on sales of all marketing factors, including advertising such as TV commercials, whose effects are difficult to see, and suggests optimal budget allocations.
※Magellan website: https://magellan.xica.net
About XICA Corporation
Company name: XICA Co., Ltd.
Representative: CEO Yoshiaki Hirao
Address: 2F, 5F, and 2F TAS Building, 2-3-6 Nishikanda, Chiyoda-ku, Tokyo
Established: July 2012
URL:https://xica.net/
*1: A survey conducted by Shoppers Eye Inc., a member of the Cross Marketing Group, on 10 marketing personnel from listed companies to investigate their impressions of 149 marketing mix modeling tools and on-off integrated analysis tools.
Survey period: October 2019-10, 16
Survey overview: Image survey of 10 marketing mix modeling tools and on-off integrated analysis tools
Survey method: Internet survey
Survey participants: 22 people aged 69-149, male and female, nationwide, working in marketing positions at listed companies, and working for companies that advertise on TV commercials
*The names and logos of XICA, MAGELLAN and ADVA are registered trademarks or trademarks of XICA Corporation in Japan and other countries.
*Other company names and product names mentioned are trademarks or registered trademarks of each company.
[Customer Inquiries]
XICA Co., Ltd. Marketing Department
TEL: 03-6380-9357
E-MAIL: marketing@xica.net
[Media Inquiries]
XICA Corporation Public Relations Officer: Kubozono
TEL：03-6380-9897
Mobile: 070-4870-6510
E-MAIL: pr@xica.net