Gartner indicates that adding four or more channels to an integrated campaign could increase campaign performance by as much as 300%. In addition, marketers today use a variety of media channels to drive branding and revenue KPIs.
Marketing mix modeling (MMM), also known as media mix modeling, is a statistical analysis technique marketers use. The method measures the effectiveness of their marketing strategy and advertising campaigns. They can use their sales data to analyze the impact of each component of their marketing mix on the overall performance of their marketing spend. It helps marketers identify the most effective channels, campaigns, and initiatives. They can also assess which ones are not providing the desired return on investment.
MMM typically uses historical or current data to provide insights into the most successful marketing mix for a given product or service and its impact on sales. With this data, marketers can make more informed decisions and optimize their marketing channels and campaigns for better results. Additionally, MMM can help develop better data-driven forecasts for future marketing investments and marketing tactics, including brand equity efforts.
Marketing teams face myriad challenges when they evaluate their current media investments and try to determine whether they have reached saturation points or if adding new media channels will produce additional results. Those challenges include allocating and optimizing their marketing budgets and channel strategies effectively. As a result, marketers can achieve their desired company goals and maximize returns on ad spending.
Regardless of industry or company type, the budget allocation challenge remains the same: understanding and maximizing the effects of every dollar invested in marketing efforts. Read this guide to learn how media mix modeling works and why now is the time to switch to a SaaS-based MMM measurement solution.
Key Takeaways:
- Where MMM fits into today’s marketing measurement strategy
- How MMM works and how it can work for you
- In-depth examples of brands using Pecan’s MMM solution
