INTERCONTINENTAL HOTELS GROUP
IHG Performance Marketing manages the digital marketing strategy, execution and management.
Challenges
IHG wanted to improve the ability to measure and optimize digital marketing spend.
- IHG was spending $100 million on digital marketing
- Had huge amount of data from different data sources
- Lacked ability to analyze return on marketing spend by channel or campaign
Approach
Developed a multi-variate regression model and analytics to measure and optimize spend:
- Developed consolidated data mart with “single source of truth”
- Created 600 million record data set with marketing campaign and hotel booking information
- Analyzed marketing return on investment by channel, campaign, market and brand
- Analyzed spend impact on revenue, average daily rate, click through rate, booking rate, lead time, length of stay and cross-channel effects
- Designed simulation model to predict revenue based on spend characteristics to help with budgeting, forecasting and revenue growth
- Developed recommendations for optimizing marketing spend
Results
- $50 million in incremental booking revenue per year
- Greater ability to adjust marketing spend in coordination with geographic market utilization seasonality
- Increased marketing spend effectiveness