Delivering True Channel Attribution & Insight The Value of Agile MMM

Client
CarParts.com
Industry
Automotive
Solutions

MMM
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ROI (to Sales)

11.1

43%

Higher ROI than other channels on average

Our goal was to prove whether or not TikTok contributed enough ROI to remain as a key channel focus in CarParts.com’s marketing strategy.

"By accurately measuring the true marketing effectiveness of our channels, we've optimized our strategy and proven TikTok’s significant impact with an 11.1 ROI and a 43% higher ROI than other channels. This collaboration has provided invaluable insights, driving remarkable business growth on a new platform allowing us to engage an entirely new audience segment"

Christina Thelin

Chief Marketing Officer, CarParts.com

Insights

CarParts.com wanted to establish the true marketing impact of their channels against core business KPIs, namely the value behind TikTok and what profitability it was driving in comparison to other core channels.

Initially they weren’t seeing tangible benefits, and wanted to remove TikTok from their modeling mix.

Incubeta was tasked with identifying the true value behind TikTok to support, or disprove their theory.

Strategy

Realizing that standard attribution modeling wouldn’t be granular enough, we ran an agile Marketing Mix Modeling (MMM) to measure TikTok’s ROI against revenue in comparison to other key channels.

Opting for MMM over a Data-Driven Attribution approach allowed us to take aggregated data across a much wider dimension (endogenous and exogenous variables). These included macroeconomic factors such as GDP, weather, competitive activity, and non-marketing factors such as holidays and seasonality.

From here we ran multiple models with 95%+ model fit scores – delivering a decomposition of each channel contribution to revenue, along with total spend % vs effect% with total ROIs. With turn-around being no more than a few days for MMM insights, strategies can be reviewed and adjusted rapidly.