Marketing Mix Modeling (MMM) is an analysis technique that marketers use to measure the influence of their marketing and advertising campaigns to determine how different factors contribute to their goal. Conversion is one of the very important tools for guiding budget decisions and measuring the impact of your marketing to find out what’s working across different channels.
Oftentimes, MMM isn’t set up to provide practical valuable insights when it comes to digital marketing. A lot of brands still treat digital ads the way they would traditional marketing which doesn’t capture the variety of ad formats and tactics available in digital marketing.
This means marketers should rise up and embrace the refinement of digital in their assessment. To obtain a more precise and actionable result on your digital efforts, see these steps below.
Assessment of Media by Market and Geography
Collect and model your data by market to help you get additional data points that make your model more representative. The more detailed the data, the more discrepancies the statistical model is able to locate, and the greater ability to separate true drivers. If only high-level marketing data is used, the model will not be able to account for critical market-level influences that impact purchases made.
Isolate Video Platforms
All online video impressions are not equal, break away from that notion. A better way of getting results is to group your videos by platform so your model gives a personal feel on each. Qualities like the length of video and how audible it is, vary widely across video platforms, what you’re trying to achieve is a great determining factor, This will have a different impact on the effectiveness of your media.
Components of Your Media Plan
Look for stronger connections between your online efforts and your offline sales. You can do this by assessing the different components of your media plan by channel, ad formats, audience segments, and the frequency and reach of your campaign.
Experiment With Your Studies
MMMs are truly complex models — they are far from perfect. You should run some sales lift tests or other separate experiments to test the impact of a single change in strategy before making major changes to your media strategy based on marketing mix modeling results. This affirmation helps guide future media planning and justifies increased investments in a platform or strategy over time.
Put Your Creativity to Test
There are countless ways to tell your brand story digitally. The wittiest marketers no longer rely on eyeballing or guesswork to make decisions. The results they see in their MMM is proof that customized creative drives sales higher than a generic message that targets a larger audience and this only happens when you give consumers the most relevant content unique to their situations. Smart marketers are using marketing mix modeling to test the potency of their creative.
As time goes by, you will see, as you measure, the effect of creative elements on sales, You will be amazed to find that sometimes, the creative elements you were so sure would have a positive impact has no impact whatsoever; other times, what seemed so irrelevant made a meaningful contribution.
Discover Your Most Valuable Digital Media Strategy
Traditional methods of measurement have to change because digital marketing offers so much flexibility. Be sure to assess your campaigns at the lowest level in order to get the most out of your modeling and your media investment. If you set up the right data inputs in your marketing mix model at the onset of your campaigns, you will be sure to get a stronger, actionable measurement in the output.