What is Media Mix Modelling?
Media Mix Modelling (sometimes referred to as Marketing Mix Modelling or MMM) is a form of statistical analysis that measures the impact numerous marketing tactics have on sales. It can also be used as part of forecasting the future impact of these tactics, giving a broad, clear picture of their effectiveness.
The term ‘Marketing Mix’ was first coined in around 1949 by Neil Borden, who likened marketing executives to “a mixer of ingredients” sometimes following a recipe, adapting one to suit their needs, or experimenting with entirely new combinations. While this description was used for consumer goods – as that was the form of transaction that created the most tangible data for the time – it can now be applied to the huge range of marketing platforms now available. The ‘mix’ may have gotten far more complex than it was in the 1950’s, but that has made pinpointing the best avenues to take even more important.
MMM vs Data Driven Attribution
Why does it matter?
The differences between MMM and other analysis models are so stark that a method can’t be used by itself. The data analysed by MMM has more of a focus on time and location than other platform’s more user-orientated data.
MMM also proves its usefulness through other means. While attribution models tend to focus on the conclusion of a campaign, MMM takes independent variables into account, such as seasonality, holidays, and even weather. An example of this would be comparing sales during Winter and Summer in New York, or sales in California and Oregon during the Christmas period.
The end result is an understanding outside business, and in spite of the ‘less human’ data being used, MMM gives more of an insight into the impact events in people’s lives have on their purchasing behaviour.
By combining the wide net cast by MMM with the interactions measured by Digital Attribution, you’re able to narrow down the reasons for your successes to minute detail.
Which is Better?
As already mentioned, it’s difficult to rank data modelling in this way, as no single method can combine all necessary components. Analytics platforms such as iSpot are now capable of taking multiple methods of data analysis into account when creating searches and dashboards, so the choice no longer has to be made!
Media Mix Modelling has proven itself to be a long-lasting contender for marketing analytics, showing a different side to sales to the more user-focused mediums.
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