How OMD revolutionized Barilla’s marketing with AI

Our strategy was meticulously crafted to address the critical challenges faced by Barilla’s marketing teams. Traditional methods of budget allocation were inefficient and often led to suboptimal outcomes. The strategic development process involved creating a centralized data lake to consolidate data from various marketing channels, ensuring easy access and management. It also included employing machine learning models and GenAI to automate the generation of insights, ensuring speed and accuracy. We developed standardized workflows and interactive dashboards to facilitate real-time decision-making and enhance operational efficiency. Additionally, we engaged with internal teams and external partners, such as OMD, to ensure seamless implementation and continuous improvement.

Execution (Implementation and Creative Application)

The execution of the MMROI project was a testament to meticulous planning, robust collaboration, and innovative application of technology. Key steps in the implementation process included partnering with OMD, BIP, EY and Adverity to develop a scalable and secure data lake, centralizing data from various sources such as digital, social, and traditional media. We collaborated with EY for IT infrastructure management and BIP for data quality assurance to ensure data and model consistency and accuracy. OMD supported the project in three key areas: initial data collection and classification globally, connecting all ad accounts to create our media data lake, and embedding the insights into all local markets.

OMD played a crucial role in manually classifying and gathering data globally, ensuring that we had comprehensive and accurate datasets to create our initial POCs (proof of concepts). They were instrumental in globally connecting all ad accounts, which was essential for creating our media data lake. This enabled us to centralize and streamline our data management processes, significantly improving data accessibility and quality. OMD also assisted in embedding the insights generated by MMROI into all local markets, ensuring that our strategies were effectively implemented across different regions.

Interactive dashboards were created to visualize key performance metrics, providing marketers with real-time access to insights and facilitating informed decision-making. Scenario planning tools were implemented that allowed marketers to simulate various budget scenarios and optimize spend based on current data. This capability provided a practical environment for strategic planning and optimization, enabling marketers to make data-driven decisions that maximized ROI. Another innovative application was the use of GenAI to create virtual AI agents that specialized in data analysis and media planning. These AI agents acted as virtual employees, automating the generation of insights and recommendations, thereby removing the need for extensive cross-team alignment and ensuring consistency in the quality of outputs.

Results (Outcomes and Effectiveness)

The MMROI project has delivered remarkable outcomes, significantly enhancing Barilla’s marketing effectiveness and efficiency. By bringing marketing mix modeling in-house and optimizing budget allocation, we achieved significant annual cost savings, reducing our dependency on costly third-party providers. The time required to build marketing mix models was reduced from three months to three weeks, with further improvements targeted to achieve a three-day turnaround. This efficiency gain has enabled more frequent updates and a faster response to market changes.

Data-driven strategies implemented through MMROI had a notable increase in sales in targeted markets, showcasing the project’s ability to capitalize on high-ROI opportunities. Our innovative approach has been endorsed by Bain & Company, highlighting Barilla’s advanced model capabilities and effective cross-market budget allocation. This recognition reinforces our leadership in the industry. Improved return on investment through precise, data-driven budget allocations across multiple channels has not only boosted immediate financial performance but also laid the groundwork for sustainable long-term growth.

OMD’s support was instrumental in achieving these outcomes. Their expertise in media planning and data analytics ensured that our strategies were effectively executed, leading to significant improvements in ROI and overall business performance. The MMROI project has deeply embedded a data-driven culture within Barilla, transforming marketing strategies and operational practices. This cultural shift has enhanced internal efficiencies and improved scalability, allowing successful strategies to be replicated across different markets and categories.

The effectiveness of the MMROI project is evident in the tangible benefits it has delivered. Our data-driven marketing strategies have led to substantial cost savings, efficiency gains, and sales increases. The reduction in model build times has improved our agility and responsiveness, enabling us to make timely and strategic decisions. The optimization of budget allocations has maximized the impact of our marketing spend, driving significant improvements in ROI and overall business performance.

Testimonials and endorsements include a marketing manager at Barilla stating that “MMROI has revolutionized our approach to planning. The process is now smoother and more efficient, with consistently high-quality insights across all channels.” Bain & Company also noted that “Barilla is ahead of most tier-one companies in terms of model capabilities and cross-market allocation.”

Looking ahead, we plan to further enhance the MMROI platform by enriching our models with more data to better measure the impact of creative elements on campaigns and long-term brand equity. We are also further developing the app for scenario planning and forecasting, which will help marketers set the right budget to achieve sales goals and improve the marketing mix. Additionally, we aim to implement Trade Price Optimization to find the optimal price discount for maximizing sales, aiding in more effective negotiations with retail partners.

The MMROI project exemplifies excellence in digital experience and technical achievement. By integrating advanced data analytics and AI, Barilla has set new standards in marketing efficiency and effectiveness. The project’s success in optimizing budget allocation, enhancing operational efficiency, and driving sales growth underscores its transformative impact on our marketing strategies. As we continue to innovate and improve, MMROI will remain at the forefront of our efforts to leverage technology for strategic growth and industry leadership.

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