MEASURE

TO GROW
Drive double-digit growth by
measuring marketing right

NOVEMBER 2021
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges
and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963.
Today, we help clients with total transformation—inspiring complex change, enabling organizations to grow, building
competitive advantage, and driving bottom-line impact.
To succeed, organizations must blend digital and human capabilities. Our diverse, global teams bring deep industry
and functional expertise and a range of perspectives to spark change. BCG delivers solutions through leading-edge
management consulting along with technology and design, corporate and digital ventures—and business purpose.
We work in a uniquely collaborative model across the firm and throughout all levels of the client organization,
generating results that allow our clients to thrive.

Meta builds technologies that help people connect, find communities, and grow businesses. When Facebook
launched in 2004, it changed the way people connect. Apps like Messenger, Instagram and WhatsApp further
empowered billions around the world. Now, Meta is moving beyond 2D screens toward immersive experiences
like augmented and virtual reality to help build the next evolution in social technology.

2 MEASURE TO GROW
Presenting the industry perspective

Digital marketing is the fastest growing channel, and already accounts for 30%+ of total marketing spends
in India. Marketing measurement capabilities and approach, however, have not kept pace. Moreover, there is
limited consensus on the best approach to measure impact of marketing investments on business outcomes.
Significant value is being left on the table and there is opportunity to unlock multi-fold growth through
robust measurement.

BCG, Meta and key stakeholders across the ecosystem have come together to present an authoritative view
on best in class marketing measurement that can become the launchpad for growth.
We are thankful to the leading measurement specialists, who provide solutions across the globe and in India, for
their valuable inputs in developing this report.

Cartesian
Consulting

We have also gathered learnings from 18 leading Indian digital-first organizations for a holistic view of
measurement maturity in India and current best practices.
We are grateful to these organizations and their leadership for their invaluable contribution.

3
 Digital marketing Significant value
is the new can be unlocked by
mainstream measuring right

Digital marketing Accurate omnichannel

spends expected to
overtake TV shortly
Digital is already the
leading channel for
measurement enables
key business decisions,
thus generating
business growth

AT A
digital-first organizations

GLANCE
70% of marketing
spends on digital
25% Gross Margin

of digital spends 10x ROI

70% on performance
marketing
60% Sales

4 MEASURE TO GROW
 Unlock growth Global shift Indian organizations
by measuring towards have started on the
“Incrementality” “Incrementality” journey

Measures the real Leading organizations Most organizations are

impact of marketing on are measuring taking their first steps;
business outcomes incrementality, with pockets of excellence
significant benefits across industries
Critical for both
strategic and
operational decisions

are still
Incremental While using basic
lift methodologies
eBay Airbnb 90%+ for key strategic
Netflix Domino’s decisions
Booking.com Walmart
Expedia Salesforce have started
Control Test Viber
10-20% measuring
incrementality

5
 CONTENTS
TABLE OF

6 MEASURE TO GROW
08 16 32
Value left on Maximizing Getting there

Corner
Practitioners’
the table growth by Measurement
Why measurement measuring right maturity in India and
matters – now The industry- the way forward
recommended
approach

7
01
VALUE LEFT ON THE TABLE
WHY MEASUREMENT MATTERS – NOW

8 MEASURE TO GROW
VALUE LEFT ON THE TABLE 9
Digital marketing spends are exploding

Digital marketing spends are fastest-growing; In digital-first organizations across

3X increase in share in last 5 years industries, digital is already the key
channel, driven by performance spends

Share of marketing spends by channel1 (%) Share of digital in total marketing spends4 (%)

90%

75%
40% 39% 40% 39%
70%
TV
65%

12% 20% 50%

30% 34%
Digital
48%
41%
30%
27%
Others
2016 2019 2021E2 2022F3

Travel e-Commerce Education Financial Media/

Technology Services OTT

Growth rate of digital spends compared

2x to overall spends 70% of digital spends on performance marketing

At this growth rate, digital is expected to

become the leading channel shortly

1. Dentsu Digital Advertising in India 2021 2. Estimated 3. Forecasted 4. BCG Measurement Maturity Assessment of leading digital-first organizations in India-2021

10 MEASURE TO GROW
But significant value is being left on the table

~65% higher cost of acquisition due to poor

measurement1
• Commonly used measurement approaches are ill-suited
to today’s complex customer journeys
of media investments can be sub-
• Multiple devices, channels and online/offline interactions
55% optimal with inaccurate measurement2

Measurement practices have not kept pace CXOs can precisely forecast impact
Only 9% on ROMI from change in spends3
with digital adoption
• Large and growing digital marketing budgets are have high-quality data that
inaccurately measured Only 5% enables key business decisions3

Measurement is an afterthought for many

organizations underinvest
• Underinvestment in capability 70%+ in measurement4
• Lack of clarity on methods and tools

1. BCG - Meta research and analysis 2. Nielsen Compass Benchmarks 3. BCG global marketing expert survey (N=100) 4. BCG Measurement Maturity
Assessment of leading digital-first organizations in India - 2021​

VALUE LEFT ON THE TABLE 11

Moreover, emergence of a privacy-first world will make current
practices inadequate

A fast-moving The changing

privacy landscape face of measurement
3P Cookie deprecation Ability to efficiently measure and
optimize spends in a privacy-first world
3P Cookies will be fully deprecated within a will be a key differentiator Marketing
couple of years
leaders
Chrome Phasing out by 2023
responsible
Need to calibrate “touch” based measurement
Safari & Firefox Already blocked models with other methods for ad budgets,
media mix,
planning and
Apple blocking identifiers
measurement
Device IDs will be significantly limited Need to start using statistical and will need to
• iOS 13 has disabled cross–site tracking experimental measurement methodologies adjust strategies
• iOS 14: Apps will need users to give against the
consent for using Advertising Identifiers
backdrop of new
Increased emphasis on browser-independent
privacy norms.
Tightening regulations solutions and first-party data
− Eric Schmitt
Strict guidelines in Gartner1
EU (GDPR) & China
In-house capabilities – measurement, data,
Imminent Privacy etc., to become a strategic advantage
Bill in India

1. Gartner, “3 Steps for Marketers to Prepare for a Cookieless World”, July 2, 2021

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Move to best-in-class measurement is the launchpad for growth

60% SALES UPLIFT

Organizations
that drive focus on
measurement as
a strategic priority ₹
10x RETURN ON AD SPENDS
see significant
value across key
metrics

₹ 25% GROSS MARGIN

Note: The figures above represent the maximum increase realized for respective metrics; impact is applicable to business driven by digital performance marketing
Source: BCG Experience with leading Indian and global organizations across Financial Services, Media, Technology, Retail

VALUE LEFT ON THE TABLE 13

THIS PIONEERING
REPORT BRINGS FORTH INDUSTRY ADVISORS
INDUSTRY CONSENSUS
ON UNLOCKING
EXPONENTIAL GROWTH
THROUGH PERFORMANCE
MARKETING
MEASUREMENT
Measurement of the return on Digital connections can drive
marketing investments is a critical breakout business growth if we
step towards changing executives’ also adopt the right set of tools
perceptions of marketing from a cost built for this multi-media universe.
center to a profit center The right measurement toolkit
is the first step to assessing
− Jean-Manuel Izaret efficiency and powering growth.
Managing Director and Senior Partner,
Global Marketing, Sales and Pricing Leader, − Sandeep Bhushan
BCG, San Francisco Director and Head of GMS,
Facebook India

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IN COLLABORATION BEST LEADING INDIAN
WITH PERFORMANCE PRACTICES ORGANIZATIONS
MARKETING FROM GLOBAL ACROSS INDUSTRIES
MEASUREMENT LEADERS ACCOUNTING FOR INR
SPECIALISTS 2K CR DIGITAL SPEND

Netflix, Viber, Airbnb, • Financial services

Domino’s, Expedia, • EdTech
Perfect Diary, • E-commerce
Walmart, … • Travel
• Media / OTT

Cartesian
Consulting

VALUE LEFT ON THE TABLE 15

02
MAXIMIZING GROWTH BY
MEASURING RIGHT
THE INDUSTRY-RECOMMENDED
APPROACH

16 MEASURE TO GROW
MAXIMIZING GROWTH BY MEASURING RIGHT 17
Keeping up with the consumer
Key questions/decisions organizations face today, driven by complex customer journeys

Decision Hierarchy Key Decisions/Questions

Optimal media mix: Online vs. offline

Long-term How do I allocate budgets between digital and
offline channels? What is the sales impact of one on
impact, need
the other?
deep insights
Strategic High-impact decisions
E.g., How do define the right mix across digital
decisions Lower frequency channels ? What will be the impact of investing in a
Media mix - channels, new channel?
geographies, LOBs1

Campaign budget optimization

Operational
decisions
Optimization - campaigns,
channels, creatives, etc.
How do I scale up/scale down campaign budgets on
Campaign-level an ongoing basis?
impact, need Ideal campaign settings
granular metrics What are the optimal campaign settings? e.g.,
conversion window, keyword selection
High-frequency Optimal campaign inputs
How do I decide which are the best campaign inputs
(e.g., creatives, ad copy, etc.) on an ongoing basis?

1. Lines Of Business

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Searching for answers
in a complex measurement ecosystem

An array of measurement solutions A flood of information

Measurement specialists
Firms offering niche capabilities:
measurement analytics, Divergent
experimentation, etc. recommendations
• Different answers from
each part of the ecosystem

Web App
measurement measurement Need for clarity on
Desktop & mobile Mobile app methods and metrics
site analytics analytic partners:
Adjust, AppsFlyer, • Limited consensus on the
tools: GA,
Branch, Singular best methods and metrics
Omniture, etc.
etc.
Organization
(In-house teams)

Publisher tools Offline In-house teams

Campaign measurement
measurement tools by External agencies needing support to
digital publishers: measuring TV GRPs, navigate complexity
Meta Ads Manager, print readership, • Organizations could benefit
Google Ads, etc. consumer research etc. from advice on ideal
measurement approach

MAXIMIZING GROWTH BY MEASURING RIGHT 19

 DEMYSTIFYING
MARKETING
MEASUREMENT
Unpacking the metrics and methods
behind best-in-class measurement

2020 MEASURE
MAXIMIZETO
GROWTH
GROW BY MEASURING RIGHT
Unpacking the metrics

THE 3 ARCHETYPES OF MARKETING METRICS

Reach metrics Click/touch-based metrics Incremental metrics

• GRPs (Gross Rating Points) for TV
• Reach
• Frequency
• ….
Metrics that measure the stimuli
introduced by a campaign e.g., unique
customers exposed to the campaign
• CPI (Cost per Install) • Incremental CPI
• CPC (Cost per conversion) • Incremental CPC
• ROAS (Return on Ad spends) • Incremental ROAS
• …. • …
Metrics that are measured basis Metrics that measure incremental
‘clicks’/’touches’ - last touch, first click, business output from a campaign;
etc.; usually from publishers’ console or providing the true impact of marketing
measurement partner interventions

Captured by Captured by Captured by

Publisher External Rules-based Multi-touch Marketing Mix User & Geo-based

consoles agencies attribution attribution Models (MMM) lift tests

MAXIMIZING GROWTH BY MEASURING RIGHT 21

Sifting measurement methods
Observed Statistical Experimental

Campaign

Methodology Pre-post tests Rules-based Multi Touch Marketing Mix User- Geo-
attribution Attribution (MTA) Models (MMM) based based
– Statistical lift test lift test
Approach • Compare movement • Pre-defined rules to • Statistical model • Regression-based • Compares impact across
in KPIs before & assign credit based on to allocate credit to model to isolate geographies/ user sets using test
after a campaign, touch point(s) in the different channels impact of multiple & control groups; measures the
crediting positive path to conversion on pathway to factors (media, real (incremental) impact of ads
movement to purchase promotions, market • Requires an experimental design
marketing • Data-driven dynamics) driving where a subset of population or
• Typically used by approach to sales lift geo unit is held out from ads, to
in-house teams to understand • Measures impact compare impact
optimize campaign impact of multiple of both online and
inputs channels offline media

Industry • Results biased by • High ease of use - • Provides real- • Measures • Enables an understanding
factors other than Used by 90%+ orgs. time and granular incremental of the incremental impact
view ads (seasonality, etc.) Provided by MMPs & output, can be outcomes of marketing interventions
• Industry publisher consoles deployed at high • Requires • Does not provide real time
recommendation: • Can over-report frequency considerable results
minimize use impact of ads for high • Dependent on investment;
intent audiences signals; weight Recommended for
• Critical to guard allocation can be a marketing spends >
against click fraud black box INR 50 Cr
Pros & cons
Ease of use
Speed to insight
Signal-loss resilience

Provide
incremental output

Best Average Head to the Practitioner’s Corner where we bust some common myths regarding these methods

1. MMP = Mobile Marketing Partner

22 MEASURE TO GROW
 No silver bullet – a mix of Strategic
methodologies needed decisions
Media
mix - channels,
geographies, LOBs

Customize measurement approach Operational decisions

CRACKING for Strategic decisions and Optimization -

campaigns, channels,
Operational decisions creatives, etc.

THE CODE
INDUSTRY
RECOMMENDED
APPROACH FOR Think incrementality - make it a key Only incremental output
KEY MARKETING part of the organization’s
credited to marketing
intervention
DECISIONS measurement DNA
Incrementality 20%+
• Incrementality is the ‘Incremental’ impact
delivered by marketing activities i.e., Impact
that would not have happened but for the
marketing intervention
Control Test

MAXIMIZING GROWTH BY MEASURING RIGHT 23

Strategic decisions: Two key recommendations Strategic
Media mix,
geography, LOBs

Operational

Decision Recommendation Implementation guide

Optimizations (campaign,
channel, creatives…)

Optimal 1a Use MMM to • Define media mix based on

incremental impact of channels, Media Market
media mix: define media mix Seasonality spends dynamics …
enabled by MMM and lift tests
Online vs. • MMM measures cross-channel
offline impact on sales
Impact of • MMM can be used at higher
online media frequency vs. lift tests MMM1
on offline sales – Ideal refresh frequency: Once
and vice versa every 6 months Media contribution
– Most effective for organizations
with spends >INR 50 cr
Online Offline
1b Calibrate MMM • Calibration enables combining
• Facebook (%) • TV (%)
with Lift tests regression & causal-based results
• Quarterly lift test to validate • Google (%) • Promos (%)
MMM output • Affiliates (%) • Print (%)
• In case of large variation, rebuild • … • …
the model

High- 2 Deploy User/ • Use for high investment activities Traditional ML-based
impact Geo based Lift (new channels, large campaigns, Geo tests Geo tests
new market launches, etc.) Complete media Controlled
decisions tests to define • Ideal test duration: 4-6 weeks black-out in media testing in
e.g., right digital channel • For Geo tests, use ML-based control geography synthetic control
digital mix mix based on synthetic control groups to avoid
incrementality going completely media dark in
control geography

Media dark Synthetic

Test
Control Control

For details on how incrementality can uncover additional information for the optimum media mix, head to the Practitioner’s Corner
1. Marketing Mix Model

24 MEASURE TO GROW
 Case Study

Defining optimal media mix

Leading Indian fashion e-tailer implements MMM, calibrates with lift tests

Org context Online fashion major was seeking the ideal media mix between digital and offline channels

Developed and deployed MMM to define media mix based on incremental impact; then
Approach calibrated the model with Lift Experiments

2.5x 3.5x
Realized
Higher ROAS higher ROAS Attribution based

Results identified on with MMM allocation

digital driven budget MMM based

allocation
TV ROAS Digital ROAS
allocation ROAS

Allocated budgets across channels based on incrementality, and continued to run user-
Implication based lift tests to validate the model output

MMM helped us bring cross-media elements into a single measurement platform and
understand their individual contributions to incremental traffic. This helped us optimize our
Org speak overall media investments
- Head, Marketing Strategy & Analytics

Source: BCG – Meta research and analysis

MAXIMIZING GROWTH BY MEASURING RIGHT 25

Operational decisions: Three key recommendations Strategic
Media mix,
geography, LOBs

Operational
Optimizations (campaign,
channel, creatives…)

Decision Recommendation Implementation guide

Scaling 3a Deploy statistical • Attribution provides granularity & speed

required for frequent decisions Important
up/down attribution
• Statistical MTA enables data-driven to calibrate
campaign models allocation of credit to multiple channels in attribution models
budgets on pathway to purchase
to augment efficacy
an ongoing
basis • Run quarterly lift tests to validate
3b
3b Calibrate output attribution output Illustration of sales
with lift tests • Always-on adjustment basis ‘calibration factor’ outcomes basis
• Augments efficacy by marrying the attribution and lift
correlational output with causal output of
lift tests

0.8x
Optimal 44 Optimize • Run user lift test to identify best
campaign campaigns for campaign settings (e.g., bidding strategy,
incrementality attribution window)
settings to
• Use the settings that delivered
maximize higher incremental outcomes for
impact future campaigns Basis Basis Lift
Attribution tests

Identifying 55 Use A/B tests to • Run A/B tests with variants of creative/ • Calibration factor of 0.8x
optimal identify optimal copy to be tested, all other settings kept identified via lift tests
the same • Applied to output from
campaign campaign inputs • Creative/ad copy with higher outcome attribution model
inputs (CTR, CVR etc.) to be scaled up for performance
(creatives, ad • Avoid Pre-Post tests; high bias due measurement of
copy etc.) to seasonality future campaigns

For more details on deployment of MTA, head to the Practitioner’s Corner

26 MEASURE TO GROW
 Case Study

Industry leaders in India are calibrating attribution models with lift tests
and optimizing for incremental outcomes
Leading Ed-tech player
calibrated attribution with user- Leading Travel player optimized
based lift tests campaigns for incrementality
The organization sought to identify the higher-ROI
Industry leading player sought to ascertain the true
optimization approach between:
Org context impact of activities on a particular marketing
• 7 day click (approach 1)
channel on app installs
• Or 7 day click + 1 day view (approach 2)

Identified the ‘calibrating factor’ for attribution Ran user-based lift test across both approaches,
Approach models through user-based lift tests and compared the incremental installs & purchases

Higher installs seen from Channel X basis lift tests Higher installs and purchases seen basis approach 2

1.25x 1.7x 5x
Results
Basis attribution Approach 1
Basis incremental lift Approach 2
Installs Installs Purchases

Optimizing for ‘7 day click + 1 day view’ gave

Calibration factor of 1.25x applied to rules-based
Implication attribution; CPI1 calculated with same calibration
higher incremental returns; future campaigns
optimized with this approach

1. Cost per Install

Source: BCG – Meta research and analysis

MAXIMIZING GROWTH BY MEASURING RIGHT 27

In summary
Five industry recommendations to drive growth through marketing measurement

Cartesian
Consulting

NO SILVER BULLET -
A MIX OF METHODOLOGIES NEEDED
Minimize use of
• Pre-post tests
• Define media mix (offline vs. online) based
to decide
on incrementality, enabled by MMM MMM
media mix
• Calibrate model with lift tests
Strategic • Only click/
decisions • Deploy Lift tests to measure incremental
touch-based
metrics
Media mix - channels, impact of key decisions, such as digital Lift tests to define
geographies, LOBs spend mix, investment in new channel etc. media mix

• Deploy statistical MTA to attribute credit Minimize use of

MTA -
across channels to scale up/down campaigns
Statistical
• Calibrate output with lift tests

• Pre-post tests
Operational to optimize
decisions • Optimize campaigns for incrementality Lift tests campaigns,
Optimization - campaigns, comparing
channels, creatives, etc. results
across time
• Use A/B tests to identify optimal
A/B tests
campaign inputs e.g., creatives, ad copy

28 MEASURE TO GROW
Hear it from the experts
When it comes to measurement, many
different methodologies are available
to marketers; which ones to use, when
to use them, how to use them – these
are the decisions that separate great
organizations from merely good ones
− V Balasubramanium (Balu)
Co-founder & MD,
RainMan Consulting
We are seeing a clear shift in the
measurement approach of mature
organizations; they are now looking to
calibrate their MMM & MTA models
with lift tests
− Vijay Ramaswamy
Managing Partner
Analytic Edge
With incrementality, marketers can
answer critical questions about their
marketing performance – questions
like “How do I know the real impact
of my marketing investments?” and
“Which campaigns really move the
needle?”
− Sanjay Trisal
GM India, SEA, ANZ & Country
Manager India
AppsFlyer
It is important that a methodology
provides granularity in measurement,
both at the user level and in the
sequence of interactions. This enables
nuanced decision making and deeper
insight generation
− Sandeep Mittal
Managing Director
Cartesian Consulting
Make the most of your marketing
budget by linking marketing
performance to actual business
outcomes. We advise our clients to
focus on all parts of the marketing
funnel and have an optimal cadence
of strategic and tactical solutions to
inform marketing decisions
− Madhubanti Banerjee,
Director, Marketing Effectiveness
Nielsen Media
Marketers should take help from AI/
ML and use advanced algorithmic
attribution models, which will give
them direction on providing adequate
credit to channels, without any bias
− Vyshak Venugopalan
Head, Solution Consulting
Adobe India
MAXIMIZING GROWTH BY MEASURING RIGHT 29
Follow the leaders
Incrementality is delivering results globally

Advanced Practitioners of Incrementality Huge Potential

• Airbnb • Deliveroo • Expedia • Hudson’s Bay • Rue La La • Viber Unlocked
• AT&T • Diageo • Ford • Netflix • Salesforce • Vodafone
• Booking.com • Domino’s • GoDaddy • Pandora • Sony Pictures • Walmart
• Bridgestone • eBay • Upwork • PepsiCo • Under Armour
50-60%
Sales uplift5

What the industry is saying 8-10x

ROAS5

Incrementality is one form of measurement that ensures that we actually understand what
our actions are, and because we know what our actions are we can affect our actions to 15-25%
improve our business. − Stephan McBride, Director of advertising science (Netflix1) gross margin
impact5
Randomized control experiments are the gold standard for marketing measurement, Despite
the challenges, the appropriate use of randomized controlled experiments should continue to
grow in marketing. − Matthew Taylor, Effectiveness specialist (Google2)
25%
increase in LTV5
Smart reallocation of wasteful marketing spend and optimization to incrementality will
generate a 2-3x increase in incremental ROI and drive continuous growth of overall sales. 6x
− Vadim Tsemekhman, Director of product management (Walmart3) higher
conversion rate5
If you want to gain a competitive advantage, your firm should build an experimentation
capability and master the science of conducting online tests.
− Steven Thomke, Professor of business administration, (Harvard Business School4) 35-40%
higher ad
performance6

1. Meta, “Unlock Business Growth with incrementality measurement”, January 2018 2. Google, “Three Grand Challenges”, June 2019 3. Association of National
Advertisers, US, Meeting presentation, October 2020 4. Harvard Business Review, “The surprising power of online experiments”, Sep-Oct 2017 5. BCG experience 6.
Harvard Business Review, “Marketers Underuse Ad Experiments. That’s a Big Mistake.”, October 28, 2020
Note: The impact on business metrics is applicable only to business driven by digital performance marketing
Source: BCG Experience with leading Indian and global organizations across Financial Services, Media, Technology, Retail

30 MEASURE TO GROW
 Case Study

Incrementality in action
Leading global sports retailer achieved $60M higher profit by adopting Incrementality

Context Revenue growth had slowed, even as costs were on the rise

‘Test & learn’ approach with an always-on pipeline of pilots, moving

Approach
beyond the classical approach of campaigns
20 incremental lift tests across 4 learning agendas
Big Bang
launch Learnings Learning agenda Pilots (select examples)
Traditional Optimize • Trademark search shutoff
Marketing Launch Marketing media mix • YouTube ROI
preparation campaigns
Maximize
• Macro influencers ROI
Iterative test and learn loop influencers
Initial hypothesis Pilot Ramp up Final pilot Identify right • FB conversion lift with
‘Test & testing learnings successful tests learnings
learn’ audience product attributes
Launch
marketing Wk 1 Wk 3 Wk 7 Identify right
prepar- ... ... New • Amazon search &
ation
Sprint Sprint Sprint audience
platforms ROI display ROI

$50-60Mn $500Mn
Impact
incremental inefficient
annualized marketing spend
net profit identified

Source: BCG research and analysis

MAXIMIZING GROWTH BY MEASURING RIGHT 31

03
GETTING THERE
MEASUREMENT MATURITY IN
INDIA AND THE WAY FORWARD

32 MEASURE TO GROW
GETTING THERE 33
Holistic measurement maturity assessment of leading
digital-first organizations

Overall Metrics Methodologies Organization Technology

Assessment philosophy captured deployed capabilities and data
across 5 and vision
dimensions
18 Organizations
across 5 sectors
• eCommerce
• Ed-tech
• Fin. Services Pushing the envelope
• Media/OTT
• Incrementality a key input into marketing decisions
• Travel
• Key skills, tech & data capabilities in place

On the journey
• Basic measurement models deployed
INR 2k cr 3 levels of • Key skills in place, developing tech & data
digital spend maturity

First steps
• Minimal focus on marketing measurement
• Minimal to no specialist skills, tech or data

Increasing maturity score across dimensions

34 MEASURE TO GROW
Early days, but promising signs
Most Indian organizations still taking first steps – but some are well on the way

Measurement capabilities ... but pockets of excellence Learnings from those pushing
still nascent… across industries the envelope
Overall philosophy and vision
making adequate investment
use only rules- 30% in measurement
• Data-driven measurement insights
drive marketing decisions
based attribution
90%+ for key strategic Adoption of advanced measurement techniques
decisions Metrics captured
deploy deploy • Focus on incremental metrics, in
20%+ MMM 10%+ Lift tests addition to click based metrics

Pockets of excellence
across industries
Pushing the envelope
Players across FS, eCom,
Ed-tech, Media driving
excellence in measurement
On the journey
Methodologies deployed
• Have started using Experimental/
Statistical methodologies to guide
key business decisions
• Use of calibration to augment efficacy
of attribution
Organization capabilities
• Dedicated team with new-age
specialist roles for measurement;
reporting to CMO
• Top-down culture of ‘Test & Learn’

Technology and data

• Capabilities to enable
experimentation and advanced
modelling
First steps
Organizations ‘Pushing the
envelope’ achieving 2-4x
Mapping of organizations basis maturity higher growth vs. peers
Source: BCG Measurement Maturity Assessment of
leading digital-first organizations in India - 2021

GETTING THERE 35
Technology, data and organization
Mature organizations have every base covered

Pushing the First

envelope1 Steps2

Dedicated functional teams for measurement 100% <40%

Spectrum of new age skills3 (e.g., data scientists) 100% 0%

Organization
capabilities Test and learn culture - pilots running at scale 2x scale x scale

Tools enabling experimentation 100% 0%

Modelling & advanced AI/ML capabilities 100% 0%

Visibility of end-to-end customer journey, digital and offline 70% 0%

Exclusive partnerships to augment tech & data 70% 0%

Technology
and data Clearly defined roadmap for tech & data capabilities 100% <40%

• Enable server-to-server integration with publishers

Invest in future-ready signal
• Augment collection and activation of first-party data
loss-resilient capabilities
• Partner with omnichannel data providers for MMM

Measurement specialists can augment capabilities, head to the Practitioner’s Corner for details

1. % of top three that fulfill criteria 2. % of bottom three which fulfill criteria 3. Number of specialist skills being more than or equal to 5
Source: BCG Measurement Maturity Assessment of leading digital first organizations in India - 2021

36 MEASURE TO GROW
Building measurement maturity – in five steps

Impact

Think
incrementality
Mix of 60%
methods Sales
Measure Deploy the right uplift
incremental impact methods based
of all marketing on the decision
interventions hierarchy; calibrate
with lift tests

10x
ROAS

Invest in Technology & Data

Build Develop signal loss-resilient capabilities
organization such as 1p data, visibility on e2e
capabilities
Dedicated team
customer journey, data for MMM, etc.
25%
with new–age skills;
Gross
augment through margin
partnerships with Promote “Test impact
measurement
and Learn” culture
specialists
Foster a culture of experimentation and
always-on pilots across the organization

Measurement strategy Capabilities

GETTING THERE 37
PRACTITIONERS’
CORNER

38 MEASURE TO GROW
Myth-busting

MYTH MYTH BUSTED

• MMMs can be modeled with just 3-6 months’ daily/weekly data

MMMs can only be run with many for channels
years of data and are useful only to
derive portfolio level insights • Can be used to optimize digital and TV for maximum incremental
impact (e.g., compare true impact of campaign optimization strategy)

The attribution window (1 day, 7

• Attribution window should be aligned to the closest true
day last click etc.) should be aligned
incremental result; e.g., if ‘7-day last click’ is closest to incremental
to the conversion cycle (average time
lift, use it as the attribution window
taken to convert)

• Pre-post tests are prone to inaccuracy due to the inability to control

Pre-post tests are the ideal method for for seasonality (day of week, week of month, etc.)
selecting campaign inputs (creative, ad
Campaign
copy, bids…) • Use A/B tests (varying one input at a time) to identify the ideal
campaign inputs

Incremental lift tests give results in • Sophisticated measurement solutions available globally can
batch mode, and not immediately provide incrementality results in just 24 hours1

• ML-based synthetic control groups enable lift tests without going

Geo lift will require control cities to be media dark
completely dark • Provides accurate output by leveraging existing variations in ad
intensity across geographies in the control group

1. Available for verticals like gaming, to be expanded to other categories

Source: Inputs from measurement specialists and industry experts; BCG analysis

PRACTITIONERS’ CORNER 39
The additional information that can be uncovered by
measuring incrementality
Conversions recorded Overlap of conversions
Why you need to Incremental conversions
1 basis last-click attribution 2 from the two channels 3
start measuring driven by channels
for Channels A & B with organic conversions
“incrementality” for
optimum media mix
ORGANIC ORGANIC ORGANIC

Possibility of under/
over reporting true Channel A
impact from last click
measurement due to:
• Clicks lost due to URL
stripping or click fraud
• Complex journeys
across devices /channels Channel B
• If a customer converts
after a view, without
clicking
Higher last-click based Lesser overlap with organic Incremental conversions:
conversions for Channel A conversions for Channel B Higher for Channel B

Bolster your attribution by Opportunity to enhance

Channel A perceived as Higher budget allocation to
measuring incrementality media mix basis insights
more effective A, not considering overlap
from incrementality

Source Last-click-based conversions Overlap with organic Incremental conversions

Illustrative
example
Channel A 400 250 150
Channel B 300 100 200

Source: Inputs from measurement specialists and industry experts; BCG analysis

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 Sub-optimal MTA models often deployed
• Marketers generally use the default MTA option available in
publisher tools
• Inertia to explore sophisticated MTA models with multiple
capabilities

Choose data-driven models over heuristic

decisioning
• Credit to channels frequently decided heuristically, susceptible
to bias
DEPLOY STATISTICAL • Data-driven models assign credit to channels based on advanced
MULTI TOUCH AI/ML based algorithms – enable unbiased decision-making
across channels
ATTRIBUTION • Periodic calibration with lift-tests for validation of model output
• Illustrative example:
MODELS TO ASSIGN – Large grocery chain heuristically attributed 40% of digital
UNBIASED CREDIT TO sales to Channel X and 20% to Channel Y
– Deployed statistical MTA, which attributed 60%+ sales on
CHANNELS Channel Y
– Piloted campaigns with higher spends on Channel Y
– Achieved higher sales and ROAS based on data-driven
attribution

Need to ‘Test-and-learn’ different models

• Critical to pilot and compare multiple statistical MTA models
– Sub-optimal model deployment can lead to inefficient
channel effectiveness measurement
• Compare MTA models for efficacy and coverage across channels,
devices, touches (clicks and/or views)
• Deploy models with output closest to incremental lift tests

Source: Measurement partners; BCG experience

PRACTITIONERS’ CORNER 41
Capabilities can be fast-tracked and augmented through collaboration with
measurement specialists
WEB APP
Measurement
specialists
Key methodologies MTA Attribution models, Incrementality-based lift tests
supported
• Algorithmic attribution across multiple touchpoints • Visibility of customer’s end-to-end mobile journey
• Customer journey analytics to understand across multiple touchpoints
touchpoints/ drop off points across the journey • Advanced models for attribution across multiple
• Cohort analysis of customers with shared touchpoints
characteristics • Profiling customers and defining audience
• Real-time segmentation of customers using segments to enable the creation of test and
ML-based algorithms control groups
• Experimentation and real-time analytics of test
results
Key offerings • Sophisticated, multi-layered, mobile ad fraud
prevention and detection

Cutting Edge Offering: Cutting Edge Offering:

Channel/budget/conversion optimization basis Measurement of the incremental impact of
automated recommendations by an AI-ML-based remarketing campaigns, using lift tests
Virtual Analyst

“For understanding how well different marketing
campaigns are doing, we go to the Adobe Analytics
suite. It’s our eyes and ears to our customers’ journeys
and experiences. It enables us to make the right
Success stories decisions on time.”
Senior Director, Analytics
(E-commerce leader)
“With the help of AppsFlyer’s incrementality solution,
we were able to uncover critical insights and achieve
better and faster results. It helped us scale up rapidly
and effectively.”
Head, Growth Marketing
(Gaming leader)

Note: Select examples

Source: Measurement partners; BCG research

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MMM, Incrementality-based
geo-lift tests
• Dynamic calibration of MMM
with real-time data
• Forecasting & simulation of
marketing mix using scenario
simulation
• DIY predictive analytics
with cloud-based, AI-driven
solution
• Synthetic geo selection for lift
tests and predictive analysis
basis results
Cutting Edge Offering:
Always-on (real-time) ROMI
insights & forecasting using MMM
“Building MMM with Analytic Edge
has helped us assess our marketing
performance and optimize media
mix real-time. It enables us to make
better decisions in an agile way.”
Head, Digital Analytics
(Global computer hardware leader)
Note: Select examples
Source: Measurement partners; BCG research
CONSULTING
Cartesian Consulting
MTA, MMM,
Incrementality-based lift tests
• Segmentation & selection of
identical customer groups for
tests using techniques such as
look-alike modelling
• Execution of multiple tests while
measuring isolated impact–
capability to measure ‘lift on lift’
• Attribution modeling using
advanced algorithms such as
Markov chain
• Customized analytics through
advanced analytical techniques
such as genetic algorithms
Cutting Edge Offering:
Dynamic budget allocation through
‘Multi-armed Bandit’ algorithm for
calibrating MMM with test results
“Using Cartesian’s NoC (Net
of Control) Lift measurement
methodology, we’ve been able to
identify 8% increment in sales from
specific marketing efforts, which
were otherwise hard to attribute
impact to. This ability really helps
us in sharpening our allocations and
focus on what is delivering results.”
Head of Marketing
(Global fast-food chain)
MTA, MMM,
Incrementality-based lift tests
• Algorithmic modeling for data
driven attribution to multiple –
touchpoints
• Online platform for scenario
planning, forecasting &
optimization using MMM
• Audience profiling through
comprehensive data on
interactions across multiple
channels - mobile, TV, print
& online
• Experimentation
through lift tests
Cutting Edge Offering:
Proprietary calibration technology
for MMMs; MTA in cookie-less world
with Nielsen ID system for customer
identification
“The attributed metrics, enabled
by Nielsen’s MTA solution, are
our source of truth. We can easily
identify channels or tactics being
under or over-reported by last paid
click, plan budget allocation more
effectively, and know which levers to
pull to drive site traffic and sales.”
Senior Digital Marketing leader
(Global travel & tourism leader)
MMM, Incrementality-based
geo-lift tests
• One-stop shop for MMM -
data integration, modelling,
visualization and prediction
• Automated online scenario
planning, simulation and
dynamic mix optimization
with MMM
• ML-based geo selection and
analysis of test results
Cutting Edge Offering:
Live MMM with daily insights for
analysis and optimization
“With RainMan, we have driven
effective media solutions and pricing
strategies. They enabled us to move
beyond the basic questions of ‘how
much and how to invest effectively
in media.’ It has helped the business
to deploy the analytical solution into
transformational action.”
Head, Business Science
(Consumer goods leader)
PRACTITIONERS’ CORNER 43
NOTE TO THE READER

AUTHORS

Shaveen Garg Pallavi Malani Vikash Jain Nimisha Jain Suhail Bhansali
Managing Director Managing Director Managing Director Managing Director Project Leader
and Partner and Partner and Senior Partner and Partner
BCG, Delhi BCG, Mumbai BCG, Delhi BCG, Delhi BCG, Mumbai
Core member of the Deep expertise in Leads the Technology, Leads the Expertise in
Technology, Media & Digital Marketing Media & Telecom Marketing, Sales Digital Marketing
Telecom practice practice in India and and Pricing practice
co-leads BCG’s growth in Asia Pacific
tech efforts.
garg.shaveen@bcg.com malani.pallavi@bcg.com jain.vikash@bcg.com jain.nimisha@bcg.com bhansali.suhail@bcg.com

Pratham Hegde Neha Markanda Devendranath Bangi

Director and Head Head of Business Business
of Measurement Marketing Marketing Manager
Facebook India Facebook India Facebook India
Extensive experience Deep expertise Expertise in
in marketing in marketing and marketing
measurement and strategy
analytics

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ACKNOWLEDGMENTS

This study was undertaken by Boston Consulting Group (BCG) in association with Meta.
We thank David Ratajczak - Managing Director and Senior Partner in the Atlanta office of the Boston Consulting Group, and Neal Rich
- Partner and Director, Marketing in the Denver office of the Boston Consulting Group, for their contributions towards the development
of this report.
We are thankful to Ankit Shrivastava, Navnoor Kaur and Chirag Singhal for their assistance in writing this report.
We are thankful to Jasmin Pithawala for managing the marketing process as well as Jamshed Daruwalla, Saroj Singh, Vivek Thakur, and
Akshata Thakur for their contribution towards design and production of this report.

© Boston Consulting Group, Inc. 2021. All rights reserved.

For information or permission to reprint, please contact BCG at permissions@bcg.com.

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