Protecting Omnichannel Performance Amid a 30% Budget Cut
Protecting Omnichannel Performance
Amid a 30% Budget Cut
In Mexico’s competitive beauty retail market, an omnichannel retailer faced a significant challenge: reduce advertising spend by nearly 30% without sacrificing traffic across physical stores and e-commerce. Rather than making across-the-board cuts, they partnered with NoiseGrasp to understand how each media channel contributed to both in-store (“bricks”) and online (“clicks”) performance.
Using a multi-output Marketing Mix Model (MMM), NoiseGrasp quantified the simultaneous impact of media investment across both pathways. This holistic view enabled strategic reallocation toward more elastic formats while identifying saturated channels that could withstand reductions. The result was a smarter allocation strategy that protected — and ultimately improved — total traffic despite the budget decrease.
Navigating Budget Reduction Without Sacrificing Growth
The retailer planned to reduce total media investment from MXN 18.8M to MXN 13.1M — a substantial 30% cut. The core risk was clear: fewer media dollars could mean fewer store visits and lower online traffic, directly impacting revenue across both sales channels.
Historically, media had been managed in silos, with limited visibility into how channels influenced physical versus digital outcomes. Without a unified measurement framework, reallocating budget during a cut would rely on assumptions rather than evidence. The client needed a data-driven way to minimize downside risk while preserving performance across their omnichannel ecosystem.
Applying Multi-Output MMM to Drive Smarter Decisions
Measure Incrementality
Quantified the true incremental impact of each media channel on both in-store and online traffic simultaneously.
Optimize Budget Allocation
Reallocated investment from saturated channels to more elastic formats to protect performance under a 30% cut.
Forecast & Scenario Planning
Simulated multiple budget scenarios to confidently select the allocation that minimized risk and maximized projected growth.
Driving Growth Despite Reduced Investment
Despite reducing total media spend by 30%, the optimized allocation projected total traffic growth from 76.3M to 81.1M visits — a 6.3% increase. The model forecasted path-specific uplifts of +4.03% for in-store traffic (62.1M to 64.6M) and +20.42% for online traffic (14.2M to 17.1M).
By managing media as an interconnected omnichannel system rather than in silos, the retailer improved overall efficiency and uncovered new growth opportunities within existing constraints.
Client was able to see:
Meta Ads were their highest traffic campaigns.
Increased spend on Google would be beneficial for local leads.
Significant drop in conversions from Pinterest.
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