Journal Articles

Quantifying both the short-term activation and long-term brand-building effects of advertising is a central part of commercial marketing mix modelling (MMM). To directly isolate each effect, a common practice includes both short and high-retention Adstock variables in the estimating equation. However, if, as is often claimed, activation and brand-building are different mechanisms, such a ‘dual-Adstock’ […]

Inconsistent user-identifiers and the walled garden policies of dominant social media players, together with the (imminent) abolition of third-party cookies has led to renewed interest in the marketing mix model as an attribution tool. However, to be useful in a post-MTA world any ‘next generation’ MMM framework needs to deliver on three fundamental business issues. Firstly,

The role of advertising in consumer demand has received much attention in the marketing literature, where the marketing response model has emerged as a dominant analytical framework. In recent years, the basic model structure has evolved in three directions. Firstly, the incorporation of online paid, owned and earned media to accommodate the off-online path-to-purchase. Secondly,

Brand management is typically defined as the way in which brands are positioned in the marketplace, both in terms of tangibles such as price, packaging and the marketing mix and intangibles such as consumer perceptions and brand equity. The conventional marketing mix model is often used to inform the tangible elements, but is lacking into

Digital media attribution aims to identify the combination of online marketing activities and touchpoints contributing to online sales conversion. Given the availability of unique user-identifiers, analysis conventionally traces the actions of single individuals. Traditional media attribution, on the other hand, evaluates the offline sales impact of offline marketing investments. Measurement is typically carried out at

This article provides an overview of the commercial marketing mix model (MMM), from economic foundations, through statistical estimation to commercial outputs. Against the background of the conventional approach, we put forward alternative theoretical and econometric frameworks for improved short-term ROI evaluation, together with techniques for evaluating the long-term effects of marketing investments and how these

The primary function of all marketing mix models is to quantify the sales contribution of marketing activities, with a view to calculating Return on Investment (ROI). To accomplish this, all such models employ econometric techniques to decompose product sales into base and incremental volume. Models that focus solely on incremental volume often recommend a marketing budget

A key feature of imperfectly competitive markets is the presence of differentiated products that cater specifically for the heterogeneity of consumer tastes. Identifying substitution patterns between such products in response to changes in price and other marketing variables is central to an understanding and estimation of consumer demand. A popular modelling framework is the continuous