Understanding the Challenge: Why Scenario Simulation Matters
Planning in marketing can be incredibly challenging, especially in the context of a multi-channel strategy. How do you decide how much to invest next quarter? Will an increase in budget truly help you hit your target? Or what happens if you decrease your ad spend by 10% next month? How will that impact your Cost Per Lead (CPL) or overall revenue goals? These are critical questions for any performance marketer, and they’re often answered with guesswork rather than data.
Why? Because the process is complex, involving multiple channels and countless campaigns. Analyzing all this data is time-consuming and prone to errors, leading many marketers to rely on intuition or habit instead of hard data. This can result in suboptimal decisions, where increasing the budget doesn’t necessarily lead to better results, and communicating the impact of your marketing efforts becomes increasingly difficult.
What is Scenario Simulation?
Imagine having the power to make data-driven decisions about your marketing budget, allowing you to set clear, measurable objectives like reaching a specific revenue target by next quarter or achieving a precise CPL by next month. That’s exactly what Nexoya’s Scenario Simulation feature offers.
Scenario Simulation is a new feature designed to take the guesswork out of budget planning. By allowing you to simulate various budget scenarios across multiple channels, it helps you understand how different investment levels might impact your performance. This dynamic, data-driven approach not only simplifies your planning process but also enables you to optimize your budget to achieve the best possible results.
Key Benefits of the Scenario Simulation Feature
- Easily Answer Tough Questions: Get clear answers to complex budget-related questions, such as how much to spend to reach a specific goal.
- Significantly Reduce Planning Effort: Streamline your planning process, saving time and reducing the risk of errors.
- Improve Communication with Stakeholders: Present data-backed insights that clearly demonstrate the impact of your marketing efforts, making it easier to justify budget requests.
How Does Scenario Simulation Work?
Here’s how the Scenario Simulation feature works:
- Data Aggregation: Nexoya aggregates all your performance marketing data from multiple platforms into a single platform.
- Portfolio Definition: Working with your dedicated customer success manager, you define your advertising portfolio—a set of campaigns across various channels that align with your specific goals.
- Scenario Creation: Once your portfolio is finalized, you can start creating simulations. Simply define the time range and budget range you’re considering.
- Simulation Results: On average, it takes between 30 minutes to two hours to receive the results. During this period, Nexoya’s AI-driven models work in the background, generating multiple scenarios based on your historical data. These models analyze performance metrics, data patterns, and seasonal fluctuations across your connected channels.
- Visual Insights: The feature provides a clear visualization of potential outcomes for each scenario, helping you see how different budget levels might affect your performance.
Scenario Simulation was first introduced in June 2024. The feature quickly gained traction due to high demand, and it has since become an integral part of Nexoya’s offering, helping brands optimize their marketing strategies with confidence.
Curious to learn more about how to use Nexoya’s Scenario Simulation feature? Ready to simulate your first scenario? Check out our detailed guide in the next article “How to Set Up a Simulation”.
Note: To activate the feature, reach out to your Customer Success Manager or leave your request here.