Marketing Mix Models (MMM) — The go-to solution in a cookie-less world
With browsers pulling the plug on third party cookies in 2023 and data privacy regulations in place, most brands have been looking at other methods to measure their marketing effectiveness.
One such method which can aid marketers in creating effective strategies is Marketing Mix Modeling (MMM).
MMM is being used in various industries for quite some time now, but many marketers have started to realize its importance due to third party cookies getting deprecated.
There are many advantages which MMM offer. Most data required for MMM are easily available and MMM doesn’t need customer personally identifiable information (PII).
However, there are several myths associated with MMM:
1. MMMs take lot of time to build
2. MMMs are expensive
3. MMMs are data intensive
4. MMMs don’t factor in digital data
5. MMMs can only be used by CPG industry
Well, neither of the above myth is correct.
Here is a take on how MMM has stood the test of time and will be useful for a long time to come.
The revamped MMM is more agile
With digital disruption taking place, MMM has seen a big revamp. Gone are the days when Marketing Mix Models used to take months to build. MMMs used these days are more agile and can be built faster and for shorter time periods. The quick and ready to use MMMs can provide actionable insights at a quicker cadence to marketers who are looking to get more real time insights.
The new MMM can use more granular data
Most digital campaigns have a short-term impact on Brand Awareness. Marketers need to feel the pulse of the customers/markets faster, and course correct their campaigns to get higher returns. To cater to such demands, MMMs can be easily adjusted to factor in more granular data (weekly/daily)
MMM goes hand-in-hand with the new digitally savvy world
Due to Covid-19, e-commerce sector has seen an unprecedented growth in the last year. With the rise in e-commerce revenue, many brands are interested in knowing which campaigns move the needle of online sales. Many brands have started to realize how MMM can help them understand that.
- Brands have started using MMM to understand which social media platforms work better and which campaigns are generating higher ROAS.
- MMM is not just backward looking anymore, the new agile MMM can be used for understanding which campaigns could work better.
MMM is not just backward looking anymore, the new agile MMM can be used for understanding which campaigns could work better.
MMM adoption going up
The purpose of using MMM is to quantify the impact of various marketing investments on KPIs such as Sales, Market Share, Brand Awareness, Leads, Orders etc.
Any marketers goal is to get the bang for their buck. This goal is same across all brands irrespective of whichever industry or category they are into.
Gone are the days when MMM used to be applied only in CPG. MMM is now readily adopted in various industries such as like e-commerce, pharma, manufacturing, banking, travel/hospitality etc.
Gone are the days when MMM used to be applied only in CPG. MMM is now readily adopted in various industries such as like e-commerce, pharma, manufacturing, banking, travel/hospitality etc.
The Takeaway
With the data privacy concerns increasing and the world becoming less, and less cookie driven, MMM will be a crucial tool in the armor of marketing teams.
For innovative marketing analytics solutions, you can reach out to us at:
Website: https://www.arymalabs.com/
LinkedIn: Ridhima Kumar
