What is Marketing Mix Modeling (mmm) and how it helps you with attribution? 2022

market mix modeling - MMM

 Marketing Mix Modeling With third-party cookies being phased out attribution modeling is likely to become difficult if not impossible in the very near future however the good news is that there are other methods for measuring the performance of different marketing channels one such technique is called market mix modeling.

 Attribution modeling takes a bottom-up approach to analyze how different channels and campaigns contribute to sales at an individual user level mmm uses statistical modeling to find correlations between marketing investments and returns at a macro level 

what on earth does that mean 

well over a particular time period you have sales well done you at the same time as having sales you're also conducting a variety of marketing activities for instance 

• you might run a google ad campaign 

• then you might run a Facebook ad campaign and 

• then you might have both at the same time 

now during all this time, your sales are going up and down

MMM - get a lot more data

get a lot more data than just a few months worth in fact for most standard mmm models to give accurate results you're going to need at least two years of historical data however even if you do the other problem with mmm is that it's slow really slow the reason for this is that mmm calculations are so complex that traditional businesses are only able to conduct them

 what this means

 when you start updating your model with all the data from the previous three months at the end of q1 you still need to wait another four to six weeks before the results are ready at which point they may or may not be relevant anymore and you're already halfway through q2 anyway now in the rapidly moving digital online world we live in this is far from ideal and so most companies adopt 

what is called a continuous mmm approach

 continuous market mix modeling as the name suggests goes beyond the traditional project-based approach to mmm to provide continuous calculations which means you can make adjustments to your channel spend without you know having to wait four months and now for a slight sales pitch because at ad verity this is precisely