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Measurement and attribution

What is Marketing mix modelling (MMM)?

Marketing mix modelling uses aggregate historical data — spend, sales, seasonality, price, external factors — to estimate each channel’s contribution statistically. Because it works on aggregates rather than individual journeys, it is unaffected by cookie loss and consent restrictions.

Definition

Definition

Also written: MMM, media mix modelling

Marketing mix modelling uses aggregate historical data — spend, sales, seasonality, price, external factors — to estimate each channel’s contribution statistically. Because it works on aggregates rather than individual journeys, it is unaffected by cookie loss and consent restrictions.

It has become more prominent as user-level tracking degraded, and it complements incrementality testing: MMM estimates contribution broadly, experiments validate specific claims.

It needs history — typically two or more years of reasonably varied spend. A channel whose budget never changed cannot have its effect separated from the baseline.

The usual error

Where this goes wrong in practice

Commissioning one for a business without enough spend variation. The model will return coefficients, and they will not mean anything.