Marketing Mix Modeling-as-a-Service

What is Marketing Mix Modeling?

MMM is an econometric modelling tool used to quantify the incremental effect of marketing measures and other activities on specific performance indicators such as sales figures or website visits. This comprehensive model is deployed to optimise the allocation of the marketing budget across various channels, product segments, and geographic markets, and enables forecasts about the impacts of future events or campaigns.

Imagine Marketing Mix Modeling as reverse-engineering a cake. You want to find out which ingredients are in a cake to bake it yourself. You find the recipe and you're ready to go! Now you can successfully replicate this dessert anytime, and you might even want to experiment with the recipe to see if it works with different ingredients or which proportion of ingredients yields even more delicious results.

That's how MMM works.

It allows us to better understand the factors (ingredients) that influence business KPIs (the cake) over time, offering flexibility in the process.

And because I offer this as an independent service, you don't need to procure any software yourself, pay expensive specialist agencies, or even write code.

What you'll get

• A media plan simulation over desired budget size and period for efficient budget use
• An effectiveness analysis of each channel/campaign including ROI, diminishing marginal utility, and adstock
• Fundamental answers to questions like offline versus online, brand versus performance, reach versus retargeting in the marketing mix
• And ideally, plenty of homework to structurally improve your marketing
  
  

Process flow

• Definition of objective and scope

  As with any study or analysis, it's crucial to define the objective and the key questions that need to be answered. This will influence the shape and execution of the Marketing Mix Model (MMM) and help you derive the greatest benefit from an MMM.

   

• Data collection

  Data collection is one of the most crucial, yet also time-consuming steps of an MMM. Time series data for sales (or another KPI), media, non-media marketing (e.g., promotions), and macroeconomic factors need to be gathered, cleansed, and prepared for use in the model. Collecting accurate and high-quality data is critical - if inaccurate or low-quality data inputs are used in an MMM, it will produce inaccurate and low-quality data outputs. Garbage in - garbage out.

• Data validation

  In addition to data collection, data validation is one of the most crucial steps in Marketing Mix Modeling. This involves a thorough review of all cleansed and processed datasets for accuracy before modeling begins. Data validation can also uncover data gaps or errors that may require additional data collection.

• Modeling

  Once the accuracy of all data inputs is confirmed, the next step is the actual modeling. This is an iterative process, meaning the models are consistently rerun and fine-tuned. The time and effort involved in this step vary significantly depending on the scope and complexity.

• Actionable recommendations

  Once the model achieves satisfactory accuracy, the next step is to analyse the data outputs and results, and create actionable recommendations based on the original business questions.