Marketing Mix Modelling is a technique supporting marketing and business decisions which is getting more and more traction in recent months as it brings promise to address key industry challenges with measurement. Many companies want to try but it’s complex. This paper answers 3 key questions every business will face – if, how and what’s next?
Performance advertisers can no longer rely solely on legacy attribution solutions which are now lacking cookies and device IDs to stitch the digital journey together and are heavily impacted by privacy regulations. That is even more true for web and app advertisers who struggle with understanding the real impact of their marketing as siloed measurement systems do not provide a full picture. It’s getting even more complex if You are an omnichannel player with a strong ecom but still a big offline legacy.
There are some alternatives though – experiments that are based on randomised control trials with a control group (not exposed to ads) would be able to answer the question of “how many people targeted by a campaign would have purchased regardless of the ad?”. Although they add accuracy, experiments have limitations as well – in that they are often “in platform” and not “cross-platform” and can offer insights that are useful for in-platform optimization, but not for cross-platform media planning.
Marketing Mix Modeling (MMM) examines how a large number of variables impact sales – both media factors but also non media ones. The goal is to understand which marketing channel or strategy (eg. promotional strategy – eg. discount price vs buy 1 get 1) impacts sales, over and above the baseline of sales that are happening irrespective of paid advertising. With MMM, data is aggregated and anonymised, making the solution privacy safe. That seems like a holy grail for many, and the rapid rise of MMM industry (incl CMMMO position) is visible. Same time many face challenges in making it work.
That is why we bring a starter kit based on hundreds of projects we’ve already delivered to guide through this process. 3 questions every C-level is asking – if (will this work for us?), how (how to implement this?), what’s next (how to make it a successful part of our decision making process)?
Read more by downloading the whitepaper and feel free to reach out and discuss. Always happy to chat.
