Media Mix Modelling, also known as Marketing Mix Modelling, is a major method of analyzing the sales and the efficiency of marketing through marketing data analysis. It can also help us understand which channels are helping us in the increase of Return Of Investments (ROI). An important thing to remember is that along with MMM you need an efficient marketing companion like Apptrove mobile measurement partner. It will not only help you in your marketing journey but will also help you with its unique dashboard and features. Media Mix Modelling can help your business to tackle every difficult situation in the market. To use MMM efficiently you must be aware of what MMM is, its advantages, and the various types of MMM. Media Mix Optimization is an important part that helps marketers improve their marketing strategies after MMM.
Media Mix Modelling
As mentioned above. It is a statistical method of measuring the impact of advertising campaigns. It is very helpful in understanding the increment in the revenue as well as the efficiency of the marketing campaigns done by the brand. It also helps in knowing the contribution of various elements of data in the increment. MMM reveals that the 4Ps in the market, are - product, price, place, and promotion. MMM can evaluate both traditional and digital channels. The insights that we get using MMM will help us to formulate better and innovative marketing strategies for better results and achieving the goals of the business. MMM also consider external factors like promotions, seasonality etc. MMM uses multiple linear regression for its performance.
Now let us look into the major elements measured in MMM:
Sales Data - This is the information about the sales of a product or a service. This data helps in understanding the effectiveness of the marketing strategies as this gives you data about the desired business outcome like downloads or sales.
Customer Data - This involves the data about the customer who buys your product and services. It includes various amounts of details about the customer, such as purchase behaviour, age, gender, location, income level, preference, interaction with the brand etc.
Media Spend - This refers to the amount of money a company spends on advertising on various channels. It can be of various types like traditional media such as newspapers and magazines or new digital media such as social media, TV and online ads. We must analyze the amount we spend for advertising and optimize their usage and make sure they are worth spending.
External Factors - These are factors that stay out of your control like the competitor's activity, seasonality, and economic scenario. These factors affect our business in both positive and negative ways. We must handle both situations in such a way that even in the negative situation we must be able to do good with our business.
Types of MMM
There are many types of MMM. Let us discuss some of them :
Traditional MMM - This approach involves the basic MMM by studying the relationship between marketing inputs like the advertising budget, promotions budget, pricing etc and the sales or other business results. The traditional model relies on time series data to look into the historical trends and the prediction of future outcomes of the business.
Digital MMM - This approach evolved after digital marketing dominated the business world. The rise in technology and the higher rate of efficiency from the digital strategies and tools caused the digital MMM a highly hopeful domain. In this model, the business focuses more on the impact of digital marketing. They also measure social media marketing, mobile email marketing, SMS marketing and other digital endeavours to increase sales and conversions.
Multi-channel MMM - This approach is effective as it combines both the methods of traditional and digital marketing. With the help of this approach, we will be able to understand how the different channels function and how their results vary from each other. This model will also help to optimize the current marketing strategies for a better plan by helping us to invest more in the channels that provide us more return and work up on the channels that are not performing well.
Machine Learning - This approach came into existence in the past few years as the realm of machine learning was developed. This is a model which uses machine learning algorithms for working. The techniques incorporated by machine learning can work on large volumes of data which provides businesses with a lot of time.
In conclusion, selecting the right model of MMM is essential for the growth of the business.MMM in today’s economic scenario is a crucial part that should be taken seriously. A platform like Apptrove will help you not only to choose the right model but also for the overall development of your business. Apptrove with its comprehensive dashboards and techniques will help the business in tracking and analyzing the various data involved in the enterprise.