Media Mix Modelling (MMM)
Media Mix Modelling also called Marketing Mix Modelling (MMM) is a data-driven analysis that examines historical sales data over an extended period, typically several months to years. It aims to understand the factors influencing sales by considering budget allocation across various advertising channels (e.g., TV, digital marketing, radio, billboards), market conditions, competitor activities, special promotions, inventory levels, product prices, seasonality, and even weather.
In essence, MMM helps businesses identify what caused changes in sales and enables them to make data-driven decisions for future marketing strategies.
- Time: MMM typically requires several months to multiple years of data for comprehensive analysis.
- Cost: Costs range from £7,000 to £35,000 for mid-sized businesses and start at £85,000 for larger enterprises.
For real-time insights, explore SegmentStream’s attribution. It only needs a few weeks of data, and once the ML model is ready, you can analyse newly launched campaigns.
Our platform examines hundreds of data points, including impressions, clicks, CRM details, and user behaviour on your website, aiming to understand the genuine impact of each channel and campaign on your revenue.
Watch this video to see an example of how businesses drive insights from SemgentStream’s report: https://youtu.be/deQKI74sGig?si=hNmHbvWwqrta10gw
What is Marketing Mix Modelling shortly?
Marketing Mix Modelling (MMM) is a long-term analysis of sales data that examines factors influencing sales, including budget allocation across advertising channels, market conditions, competitor activities, promotions, and more. It’s used for strategic budget allocation and holistic marketing analysis.
Marketing mix modelling vs. attribution
Marketing Mix Modelling (MMM) helps with budget planning and strategy by assessing the overall impact of marketing efforts. It’s best suited for companies with significant marketing budgets and diverse channels like TV and radio to evaluate advertising effectiveness.
Attribution we use for day-to-day optimisation by relocating the budget to the channels, campaigns, and activities that have the most significant impact on revenue.
Both MMM and attribution can complement each other. For instance, MMM provides holistic data for tactical decisions, while advanced attribution models like SegmentStream offer real-time insights by analysing various data points, from impressions to user behaviour.
Marketing Mix Modelling use case
A multichannel retail company aims to optimise its marketing spend across various channels, including TV, digital ads, print media, and radio. By analysing historical data spanning several years, the company identifies which channels deliver the highest ROI.
Is there real-time Marketing Mix Modeling?
Real-time Marketing Mix Modeling is not common, because it relies on several months/years of historical data. However, emerging tools like SegmentStream offer quicker insights for on-the-fly marketing adjustments.
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