Frequently Asked Questions
What is Polaris Research, Inc.?
Polaris Research, Inc. is a leading analytics firm specializing in omnichannel attribution modeling and optimization. Based in Austin, Texas, we help businesses quantify the ROI of their marketing efforts across all media channels, empowering data-driven decisions to optimize budgets and maximize sales, revenue, and market share.
What is Omnichannel Attribution & Optimization?
Our Omnichannel Attribution & Optimization service is a comprehensive platform that links all media channels (e.g., TV, radio, digital, social, mobile), marketing levers (e.g., pricing, promotions), and market influences (e.g., consumer confidence, seasonality) to key outcomes like sales, revenue, and brand loyalty. By combining marketing mix modeling (MMM) and multimedia attribution (MMA), we provide actionable insights to optimize marketing budgets and improve ROI by up to 35%.
How does Polaris Research quantify marketing ROI?
We use advanced statistical models, such as Box-Jenkins transfer function models and pooled time-series models, to link marketing inputs (e.g., media spend, promotions) to outcomes like sales and revenue. These models calculate media-specific elasticities, quantify cross-media synergies, and determine ROI and cost-per-sale (CPS) for each channel and tactic, while accounting for factors like seasonality and competition.
What is the Marketing Effectiveness Statistic® (MES®)?
The MES® is a proprietary metric that quantifies the effectiveness of each media channel or tactic. A score of 100% represents the Economic Optimum, where marginal returns are maximized. Scores below 10% indicate underfunding (Critical Mass Threshold), while scores above 300% suggest diminishing returns. The MES® enables benchmarking and optimization across products and industries.
What is Marketing Mix Manager®?
Marketing Mix Manager® is our secure, subscription-based online portal that delivers real-time marketing performance reports, 13-week forecasts (accurate to within 1% of actual results), and optimization tools. It supports planning across 210 Nielsen US DMAs and individual store locations, offering customized reporting and scenario planning for strategic decision-making.
What types of data are required for your services?
We require macro-level data (e.g., weekly media spend, impressions, sales, and KPIs like revenue or brand loyalty) for at least 52 weeks, with 104+ weeks preferred for accuracy. For micro-level (campaign) analysis, we need daily impressions and sales/conversion rates for at least 365 days to capture seasonality. We also incorporate external factors like economic indicators (e.g., consumer confidence, inflation) provided by Polaris Research.
How does Polaris Research handle media synergy and buildup?
We measure media synergy by analyzing interactions between channels (e.g., how TV spend increases digital media effectiveness) and quantify buildup through lag structures, which show how long it takes for a medium to reach full market impact (e.g., nine weeks for Linear TV). These insights inform efficient media flighting and budget allocation to maximize ROI.
Can your platform forecast sales and revenue?
Yes, our platform uses historical data and planned media activities to generate forecasts with high accuracy (less than ±2% mean absolute percent error for 6-month validations and <1% total error for 26- to 52-week forecasts). For example, our year-end revenue forecasts have been within 0.07% of actual results.
How does Polaris Research account for macroeconomic factors?
We maintain a library of over 40 US macroeconomic indicators (e.g., consumer confidence, weekly wages, inflation) and test their impact on your business. Our models estimate lag times (1 to 26+ weeks) for these factors, enabling proactive strategies to counter negative pressures or leverage positive trends, such as using multimedia mixes to mitigate up to one-third of sales losses during economic downturns.
What industries does Polaris Research serve?
We have extensive experience across industries, including Communications, Travel, Automotive, Restaurants, Retail, Technology, Insurance, Financial Services, Healthcare, Pharmaceuticals, and Education, serving Fortune 500 companies and media agencies globally.
How does Polaris Research ensure model accuracy?
We validate our models by reserving at least one-quarter of sales/revenue data for out-of-sample forecasting. Our cascade modeling architecture (Portfolio → DMAs → Stores) uses machine learning to ensure accuracy and consistency across geographic levels, delivering balanced results for reporting and optimization.
What makes Polaris Research different from competitors?
Integrated System: One set of equations drives media effectiveness, ROI, optimization, and forecasting, ensuring consistency.
Machine Learning: Automated modeling for 210 Nielsen DMAs reduces costs and increases quality.
Flexibility: Customizable views by geography, brand, product, or channel.
Media Neutrality: Our 28+ years of media experience ensure unbiased, data-driven insights.
Direct Access: Clients work directly with our system architect, Dr. Roy W. Ralston, for tailored solutions.
Real-Time Adaptability: Our platform adjusts to market changes for timely, relevant insights.
How can I get started with Polaris Research?
Contact us to discuss your needs. We’ll assess your data, customize our approach, and provide a solution tailored to your business goals, typically delivering initial insights within weeks.