A SMART SOLUTION TO OPTIMIZE YOUR BUDGET ALLOCATION
Bizpoint is a marketing budget allocation tool that optimizes the funding you have for each brand so that it aligns with specific sales and business goals. It can work in a single market across a portfolio of brands or across markets and brands at the same time.
Allocate and rationalize
Allocating and justifying marketing budgets involves many stakeholders, and the process is a difficult one for advertisers. Brands often have two options: Take last year’s budget and tweak it or do a bottom-up multi-factor fresh solution. The first option is safe, but may not be optimal. The second can be complex, time consuming and involve many stakeholders. This zero-based approach may invite criticism from brands that lose out and be accused of subjectivity or bias.
Bizpoint helps you to generate, evaluate and compare multiple budget allocation scenarios. It uses quantitative data and can leverage investments brands have made in market mix modeling. Qualitative factors can be included, but in a structured and consistent way. The outcome is a budget allocation process that is objective and comprehensive that will help build consensus and deliver better returns on the investments.
Bring Value to your business
Bizpoint brings better financial management to marketing. Use Bizpoint to:
- Allocate budgets across brands and products
- Allocate budgets across various markets
- Accommodate various strategies using a zero-based budgeting approach
- Set pre-conditions for certain brands or regions (e.g., spend requirements in a certain region or for a certain brand)
- Use modeling results but also handle gaps in modeling coverage
- Be customized to handle the factors and rules that each advertiser uses
- Establish a central database with relevant information for budgeting
- Defend and explain various scenarios
How does it work?
The first phase is defining the scope and collecting all the data that will be used in building your scenarios. This includes basics like revenue and previous spend, as well as assembling any modeling results available. Any strategic prioritization of brands (e.g., growth brands) can also be incorporated. Supporting data like media costs and typical ad sales ratios would also be sourced.
The second phase involves preparing the data and transforming the models so they can be used in allocations and handle gaps for un-modeled brand and market combinations.
Once packaged into the tool, clients can be trained and supported in running multiple scenarios or can request the Nielsen teams to prepare the scenarios. Because the scenarios work with revenue curves, they produce different outcomes at different spend levels unlike more simple Excel approaches.
You can also build scenarios respecting priority groups (budget may vary +/- 20%) or set constraints that a market must receive a minimum level, while letting the software decide which brands account for that minimum.
The leading-edge analytics that power the software generate optimal budget allocation scenarios that are in line with your defined candidate total budgets and requirements. The software features a diverse selection of metrics for each scenario, as well as a variety of scenario comparison features to help you make accurate decisions for your business.
Bizpoint is available as both a software service that is embedded in an organization and as a consultancy service, where we run the simulations for you.
Together with Bizpoint, your budget allocation process will be comprehensive and smooth and will help to generate a greater return on your marketing spend.