Understanding MMM
A media mix model is a statistical analysis technique that’s used by marketers to quantify the effectiveness of different marketing strategies on sales and to predict the outcomes of applying future strategies. This approach is frequently employed to fine-tune advertising expenditures to enhance the return on investment (ROI) or to meet other key marketing objectives.
It is a privacy-friendly approach where you neither have nor need access to user-level data. It is a top-down approach where the model is fitted to aggregated data, and the results are then used to inform future marketing decisions.
Let’s see why we should use MMM:
- Privacy-friendly and signal-resilient: It is privacy-friendly and resilient to cookie deprecation. Compared to multi-touch attribution, it is less reliant on online signals.
- Holistic: It takes into account all marketing (both online and offline) and non-marketing activities (seasonality, events, promotions)...
