Malaysian Media Awards Winners Showcase





2023 | |

Pizza Hut’s AI-driven Performance

Advertiser: Pizza Hut Malaysia
Brand: Pizza Hut
Creative Agency: CARAT MEDIA SERVICES (M) SDN BHD
Credits: -

Objective & Challenge
The overall business challenge for Pizza Hut Malaysia is centered around marketing efficiency and effectiveness. The specific challenges they faced are as follows: 1. Disparate data sets and lack of data visualization for business insights and analytics: Pizza Hut was struggling to gather and analyze data from various sources, hindering their ability to gain valuable insights for driving marketing strategies. Additionally, the absence of effective custom data visualization tool made it difficult for them to interpret and make informed decisions. 2. No unified measurement in place: Pizza Hut lacked a standardized approach to measure the effectiveness of marketing efforts across different channels and touchpoints. This hampered their ability to compare campaign performance, evaluate ROI, and make informed decisions regarding smart budget allocation and optimization. 3. No scientific way to optimize future media investments and predict business outcomes: Pizza Hut lacked a reliable method to assess and forecast the impact of media investments against sales inability to adapt to changing market dynamics effectively.

Insight & Strategy
Overall strategy was to drive marketing efficiency and effectiveness. 1. We successfully integrated and unified data from various sources, including online and offline channels. This comprehensive approach provided a holistic view of the marketing landscape, incorporating metrics such as media performance, return on investment (ROI), spend, brand health, competitor analysis, sales, revenue, and market share. Having a single source of truth enabled Pizza Hut team to uncover business insight to make faster business decisions. 2. Minimized manual datacollection work and automated data visualization process: We built a robust data management system to reduce the need for manual data collection. Automation allowed for faster and more efficient data gathering, freeing up the marketing team’s time to focus on driving business performance instead of spending excessive time on data collection. 3. Powerful ML modules for interactive analytics: Predictive ML modules were built to run analytics in a highly interactive manner 4. Quasi channel attribution model for agile marketing spend optimization: We developed a quasichannel attribution model, specific to Pizza Hut determine spend threshold across channels with predicted sales. By attributing the impact of marketing activities across different channels, Pizza Hut was able to optimize their budget allocation to maximize ROI.

Execution
Our proprietary AI solution has been instrumental in driving marketing efficiency and effectiveness by incorporating a forwardthinking approach and advanced features. It’s futureproof, open architecture design allowed for accurate forecasting and attribution of channel sales, ensuring Pizza Hut stays ahead in the everchanging media landscape. For forecasting sales, our AI tool employs the Prophet model developed by Facebook. This model takes into account past sales, seasonal trends, and outliers to predict future sales with an 80% confidence interval. By leveraging these reliable forecasts, Pizza Hut was able to make informed decisions and improve their media spend allocation and planning strategies. To address the attribution challenge, our AI tool utilizes the Random Forest Algorithm. This algorithm considers various factors such as historical data, competitive brand health insights, and inflation metrics. By analyzing these data points, our AI tool accurately calculates the impact of past media investments and runs multiple media investment scenarios to optimize future media plans. Our AI tool also offers realtime reporting capabilities, providing valuable insights to Pizza Hut. This empowered them to make datadriven decisions on the fly, monitor campaign effectiveness, and optimize their marketing budget allocation. By leveraging our AI tool’s advanced architecture and MLbased models, Pizza Hut was successful in driving incremental sales YoY.

Effectiveness
Pizza Hut’s implementation of our proprietary AI solution has yielded impressive business results. 1. 8% Monthly Incremental Sales: With the help of the AI tool, Pizza Hut experienced a significant boost in sales. By leveraging the AI tool’s forecasting capabilities and optimizing their media efforts, Pizza Hut successfully attracted more customers and generated higher revenue. 2. 5% Media Efficiency: The AI tool played a crucial role in enhancing Pizza Hut’s media efficiency. By leveraging advanced analytics and optimization techniques, Pizza Hut was able to allocate their marketing budgets more effectively and generate better returns on their marketing investments. 3. 4.75% Increase in ROAS : By accurately measuring the impact of their media investments and running various scenarios, Pizza Hut was able to optimize their advertising efforts to maximize returns.