PHD Singapore and PropertyGuru worked in partnership to implement BEAM (Brand Equity Attribution Modelling) and challenge industry best practices
Within a year of implementing an evidence-based method for optimising its investments in brand-building, PropertyGuru has managed to increase media effectiveness by 20% to 30%.
Brand Equity Attribution Modelling (BEAM) is a programme created as a result of a partnership between PHD Singapore and PropertyGuru, with the goal of achieving a quantum leap in media effectiveness by challenging industry best practices.
Shedding the norm of measuring brand equity on an interval basis, PropertyGuru adopted a continuous measurement approach while building media plans on the basis of high-velocity experiments.
The marketing team used quantitative techniques to stress test and discover the most effective media mix and adopted a performance-based agency compensation model for PHD.
“By applying the principles, we have been able to increase media effectiveness by 20% to 30% per market,” said Bjorn Sprengers, the chief marketing officer of PropertyGuru. “Simply put, it means we can grow our brand equity with 20% to 30% per market at stable budgets, even more, if we add investments.”
According to Sprengers, the BEAM regression model works by correlating media channels to a Brand Query Index (BQI) which offers a very high ‘goodness of fit’ whereby the coefficient of determination in Malaysia is over 85%.
“Per channel, we now understand how much we need to invest to get a maximum yielding impact on brand equity,” said Sprengers. “We express these investment levels in response curves that show beyond what level of investment, impact on BQI start to diminish.”
This is followed by the calculation of the optimal media plan on basis of the best combination of channels plus investment levels. Comparing these optimums with the historic cost per BQI-point then allows PropertyGuru to prove the delivery of efficiency by 20% to 30% while cutting 50% of brand spend wastage.
According to Sprengers, the BEAM approach allowed PropertyGuru to become in market leader in 2017, with 0.9 times the SEO share-of-voice of the incumbent in the first quarter and 1.3 times by the fourth quarter.
“We have observed that 25% of this result came from BEAM optimisation,” Sprengers said. “The logic is that a stronger brand leads to stronger performance in branded keyword sets. Particularly in online property in which a big chunk of organic traffic is driven by branded searches, investment in brand helps to drive organic traffic.”
The full case study including lessons learned and a look to the future was authored by Babar Khan Javed for Campaign Asia and can be accessed here