In 2015, the Gross Advertising Investment in Tunisia has reached 220.5 MD (107.000$), figure announced by “Sigma Conseil” -a survey & studies group- at the Open Sigma Day 2016.

Considering the size of the population, this would mean that the average advertising spending per capita in Tunisia is about $ 10. Locate this figure in the global context leads us to realise that the United States, the largest advertiser in the world spends 60 times more, the United Kingdom 40 times and France 23 times more, all per capita!

This figure is alarming for the media landscape’s balance in Tunisia and the economy in general as a consequence. It is therefore important to analyse the situation and try to find solutions that encourage Tunisian advertisers to spend more and achieve international standards.

Tunisia is in an economic and political crisis, so it is normal that advertisers are conservative in terms of advertising budgets considering the state of uncertainty in which they operate. The agencies are making their best to make advertisers aware of the importance of the investment in order to boost consumption, even in this state of uncertainty. This is what the English describe as a typical situation of “catch 22”.

To get by, it is critical that agencies starts to adopt a more analytical approach that gives greater visibility to clients by quantifying the impact of each media investment and simulating the performance of various budget combinations. On Worldwide scale, these techniques are known under the term of Marketing Mix Modelling or MMM. The MMM is based on an exhaustive study of the history of the brand and the application of advanced statistical methods to clear the Return on Investment or ROI of each marketing activity.

Marketing Mix Modelling

The advantage of these methods is that they are able to respond in an encrypted way to questions asked by advertisers: such as how much to spend, what optimal mix adopted and especially how many sales would be realized (forecast). The MMM, therefore, complements perceptual measures (emotional closeness, purchase intent …) by adding a practical dimension: the impact on actual sales.

Finally, we believe that the adoption of such advanced methodologies is no longer a luxury but a necessity in order to present to advertisers convincing statistical arguments to move up a level in terms of advertising investment.