What is Halo effect? – Data Science for CMOs episode 3

What does it mean if a campaign has a spillover effect or that a product is affected by a halo impact? Christopher Engman guides you through the jungle of data science terms.

What is the Halo effect/spillover effect in marketing? 

Halo impact or spillover effect are two terms that describe the same thing. The spillover effect is normally used in the statistical world while the halo impact is more commonly used in marketing. To explain what the halo impact is, let’s use an example. If we are promoting Philips razors, then that marketing normally has a positive effect on Philips dishwashers as well. So there’s a positive spillover effect on other products in a brand.

The other day I was meeting with the CMO of a very nice brand in Sweden. And she was very frustrated over the fact that she had run really good branding campaigns in TV but the head of performance marketing and radio took all the credit during the management meeting because he could show the data of his conversions. She understands that she’s been driving that performance but she couldn’t show the numbers of her marketing activities.

So the halo impact shows the spillover effect of how your marketing activities affect the sales of other products or the overall brand. If you aren’t aware of the halo impact you can make really bad decisions.