market mix modeling - MMM
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
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