Case Study: a second largest U.S. company saves over $100M in marketing spend with Pecan MMM

Second Largest U.S. Company in Its Industry identifies $100M+ in marketing savings with Pecan

The Second Largest U.S. Company in its industry, with a marketing budget exceeding $1 billion, faced the challenge of optimizing its extensive omnichannel spending to improve efficiency and operating margins without reducing revenue. A key difficulty was obtaining reliable data from national channels like linear TV and radio. To address this, the company partnered with vendor Pecan and utilized its Marketing Mix Modeling (MMM) service.

Pecan's MMM solution used four years of data to predict customer inquiries based on ad spending, providing both national- and state-level forecasts. The platform's simulation and optimization tools enabled the team to test different budget allocations and instantly calculate the most efficient spend. This resulted in the identification of over $100 million in overspending and a potential for $200 million+ in annual savings through reallocation, all while actually increasing the number of customer inquiries.