Cross channel by r

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I talked about using advanced time series methods to analyze cross channel advertising problems, like attribution analysis, cross channel budge allocation. I added an empirical study to analyze TV advertising and Search Advertising.

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Cross Channel by

Zhou YuBusiness Analyst Efficient Frontier

Before Crossing Channels

Single Channel Efficient Frontier

ORGANIC

Natural Search

Google

Email

Cost

Revenue

Why Crossing Channels

• Interactive Effect• Attribution Analysis• Optimize budget across Channels

Cost

Revenue

TV Spend

SEM Spend

How to Cross Channels: SVAR Model (Package vars)

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Vector Auto RegressionInteractive Relation ttt YAY

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SVAR: Contemporary Impact

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ttt YAY

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An Empirical Study• TV Spending• SEM Spending, Clicks• Total Revenue

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TV

SEM

REV

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TV

SEM

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1321 tttt REVSEMTVREV

How they interact: Impulse Response Function

Time Period (Weeks) Time Period (Weeks)

Impulse of TV Impulse of Search

SEM

Spend

TV Spend

TV has an effect on search spend while search spend doesn’t have significant effect on TV.

Prediction

Incorporate two channels’ information to make prediction

Attribution Analysis: A little Math

SEMTVvenue ReGoal

Model1321

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SEMTVSEM

Results

SEMTV

SEMSEMTVTV

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Optimal Budget Allocation

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SEMSEMSEM

TVTVTV

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tTV

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tSEM

REV

Goal ?,

tt SEM

REV

TV

REV

Model

Results

TV Spend

SEM Spend

Cross Channels by

Thank You!Zhou Yu

Business Analyst Efficient Frontier