TalkTalk PCW Aggregator Modelling Project

m/SIX / TalkTalk

 

This is not a conventional advertising evaluation project, but it is a great example of using econometric modelling to predict and quantify the variables that drive sales in a highly competitive marketplace and deliver significant cost-benefits to TalkTalk.

We used econometrics to identify and quantify the variables which drive TalkTalk’s sales success in the broadband aggregator (PCW) marketplace. We were able to gather all the data specified above at a weekly level extending over more than two years. We built a multiple regression model using 30 independent variables with aggregator sales as the dependent variable.

TalkTalk generates around 150k sales per year through PCWs at an average CPA of c.£100. Early results suggest we will reduce CPA by min. 10% to £90 using these insights. This represents an annual cost saving of 150k x £10=£1.5m.

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