Analytics
Marketing Mix Modeling
Marketing mix modeling (MMM) is a statistical analysis technique that quantifies the impact of each marketing channel on sales and other business outcomes. It uses historical data to optimize budget allocation across channels for maximum return.
Examples
A CPG brand uses marketing mix modeling to discover that shifting 15% of TV budget to digital video yields a 22% improvement in overall sales lift.
Best Practices
Include external factors like seasonality and economic conditions in your model, and refresh the analysis at least twice a year to capture market shifts.