The Marketing Mix Model is a popular business tool designed to quantify marketing Return on Investment (ROI), guide the optimal allocation of marketing resources and inform sales forecasting. The foundations of modern Marketing Mix Modeling (MMM) comprise four main pillars. 1. Microeconomic consumer theory Successful MMM requires a solid understanding of the product demand curve. […]
The Foundations of Modern Marketing Mix Modeling Read More »
Conventional MMM is short-term focused The conventional Marketing Mix Model (MMM) deals predominantly with short-term marketing effectiveness, where dynamic specification in the form of Adstocks focuses on ‘mean reverting’ or transitory effects over several weeks or months. However, long-term effects, reflecting the persistent changes in core brand preferences inherent in genuine brand-building behaviour, are often
Brand Equity Metrics and the Marketing Mix Model Read More »
Overview A key focus for most marketing managers is optimal allocation of the marketing budget. This relies heavily on correct causal attribution to each element of the marketing mix. The marketing mix model is a popular method to help inform this process, where ‘nested’ sequences of equations trace out a hypothesized consumer purchase journey, quantifying
Endogeneity And The Marketing Mix Model Read More »
For decades MMM has been seen as a way to identify the “50% of advertising spend that is wasted”. However, failure to acknowledge two fundamental issues will risk continued waste through misestimation of both Performance and Brand Marketing, resulting in suboptimal allocation of marketing investment and significantly reduced marketing effectiveness. Modern Marketing Mix Models have
Presented by: PricewaterhouseCoopers & Marketscience April-May 2021 Recently, top tier consulting firm, PricewaterhouseCoopers (PwC), and advanced marketing analytics consultancy, Marketscience, had the pleasure of presenting together to ISBA members on the impact that COVID-19 has had on measuring marketing effectiveness. Marketscience & PwC have worked together
COVID-19 Impact on Measuring Marketing Effectiveness: ISBA Member Presentation Read More »
In the wake of COVID’s impact, the questions and uncertainty that surround measurement and analytics grows larger by the day. With such an unprecedented and unusual event, the implications and effects remain largely unknown. When to model again, whether past models are relevant, and strength of impact are all top-of-mind questions for any data driven,
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Anyone who tells you that Marketing Analytics is an exact science is wrong. The algorithms, the data, the optimizations and the simulations can all lead to many different outcomes depending on who and how it is processed and measured. When done correctly, there is much to gain. One can optimize budgets and increase returns on
The Six Questions You Should Be Asking Your Marketing Analytics Vendor Read More »
Uncovering the Realistic Capabilities of Marketing Mix Modeling It’s 2017: you’re explaining to your CMO, CFO, and other department leads about the vast opportunities that Marketing Mix Modeling (MMM) can unearth for your brand. You run your audience through various scenarios and examples that showcase these opportunities in detail. The promise of a ‘new way
Has the time for an accountability approach arrived? After the recent news of Comscore’s Chief Executive Bryan Wiener and President Sarah Hofstetter stepping down, we started thinking about the future of media measurement and reporting. As a category, the currency for trading is suffering; with investment dollars increasingly shifting out of TV and into digital, companies like
The Future of Media Measurement Read More »