What is Marketing Mix Modelling (MMM)?
Posted: Sat Dec 07, 2024 3:53 am
One of the biggest headaches in digital marketing is the problem of attribution. Because consumers are impacted multiple times online and offline, it’s not always easy to know which channels are delivering the best results.
Marketing Mix Modelling offers a solution to this problem by applying an analytical approach, allowing us to know the real impact of each channel on sales and how to adjust the investment to achieve the best results. We tell you all its secrets.
Are you thinking about applying Data Science in your company and have questions? Click here and book a consultation with us . We will help you define whether this tool fits your objectives and how it can benefit you.
What is Marketing Mix Modelling?
In the famous words of John Wanamaker, "Half the list of paraguay consumer email I spend on advertising is wasted: the trouble is, I don't know which half it is." Marketing and sales professionals professionals , we have more and more channels at our disposal, so it’s more important than ever to understand which ones are working for us and which ones aren’t.
In online channels we can know which channels have received the most clicks and track users through techniques such as cookies, although it is still difficult to obtain total precision. In offline marketing , such as TV commercials or outdoor advertising, things become much more complex, as we have no way of tracking individual impressions and reactions.
And this is where Marketing Mix Modelling comes in. can help us.
Marketing Mix Modeling is a statistical modeling technique that seeks to identify the relationship between marketing spending on each channel and the results obtained by it. (whether in terms of website visits, sales, customer acquisition or other KPIs).
Marketing Mix Modelling uses historical data and regression techniques to find out how each channel contributes to the KPIs . To do this, it is necessary to identify the variations in spending on that channel and the corresponding variations in the KPI. Therefore, we can only apply this model if our marketing spending fluctuates over different periods and channels.
If we apply Marketing Mix Modelling correctly, we will be able to know precisely how the investment in each channel will affect our KPIs.
Marketing Mix Modelling offers a solution to this problem by applying an analytical approach, allowing us to know the real impact of each channel on sales and how to adjust the investment to achieve the best results. We tell you all its secrets.
Are you thinking about applying Data Science in your company and have questions? Click here and book a consultation with us . We will help you define whether this tool fits your objectives and how it can benefit you.
What is Marketing Mix Modelling?
In the famous words of John Wanamaker, "Half the list of paraguay consumer email I spend on advertising is wasted: the trouble is, I don't know which half it is." Marketing and sales professionals professionals , we have more and more channels at our disposal, so it’s more important than ever to understand which ones are working for us and which ones aren’t.
In online channels we can know which channels have received the most clicks and track users through techniques such as cookies, although it is still difficult to obtain total precision. In offline marketing , such as TV commercials or outdoor advertising, things become much more complex, as we have no way of tracking individual impressions and reactions.
And this is where Marketing Mix Modelling comes in. can help us.
Marketing Mix Modeling is a statistical modeling technique that seeks to identify the relationship between marketing spending on each channel and the results obtained by it. (whether in terms of website visits, sales, customer acquisition or other KPIs).
Marketing Mix Modelling uses historical data and regression techniques to find out how each channel contributes to the KPIs . To do this, it is necessary to identify the variations in spending on that channel and the corresponding variations in the KPI. Therefore, we can only apply this model if our marketing spending fluctuates over different periods and channels.
If we apply Marketing Mix Modelling correctly, we will be able to know precisely how the investment in each channel will affect our KPIs.