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Abstract picture that shows the complexity of a mathematical model

Based on the FRANCO index. Designed to diversify risk across different types of marketing activities

Portfolio

Budget Allocation

Aims to maximize expected returns at a given risk level and formalizes the concept of diversification in investment portfolios

to decrease risk. 

Based on Modern Portfolio Theory (MPT)

It can calculate the risk and reward based on weekly sales value data (i.e. ratio between incremental and total sales) or on attributes data (i.e. awareness, consideration, etc)

2 approaches to analise marketing investments

Both models generate portfolio optimisation outputs but they are the best complement to each other as MMM adds info at media channel level and MPT creates historical betas.

Best complement to MMM

Explanation of how portfolio budget allocation works

MPT ranks portfolios according to expected return (mean) and risk (standard deviation), and helps choose the set of optimal portfolios that offer the highest expected return for a defined level of risk.

How does

Portfolio Analysis

work?

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Copyright © Market Mind Analytics, 2023

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