Marketing Mix Modeling (MMM) is not a new concept. Popularized in the 1990’s, MMM is a reliable way to measure marketing effectiveness and understand the impact of marketing activities on business performance. Identifying the marketing drivers behind performance helps companies understand which drivers are responsible for changes in contributions to sales over time. These learnings coupled with optimized media budgets help drive long-term planning.
Several months ago, ScanmarQED finished developing a new MMM workflow designed to speed up the modeling process, improve insights, and create a more agile way to assess business performance and adapt planning. The emergence of COVID-19 and the economic repercussions that followed have created an environment that now requires companies to boost agility, adaptability, and remote collaboration. While media spend is often the first piece of the marketing puzzle to lose budget allocation in times of economic duress—mainly because it’s difficult to assign value to all marketing efforts in real time—it’s wise for companies to view media spend as an investment, rather than a mandatory, sometimes non-essential, expense.
Our current economic climate means that media plans created prior to the pandemic must be updated. Furthermore, things that drive sales this month may very well change next month. The ability to quickly rebuild and redirect funds is critical—either increase your company’s agility or fall behind.
To become more efficient and improve the efficiency of operations, marketing needs visibility into every aspect of the business and the ability to respond quickly to market opportunities. The below table outlines several common challenges of typical marketing mix modeling workflows and how making a few changes can improve not just your marketing effectiveness but every facet of your team’s media planning process.
Our new MMM platform gives organizations comprehensive visibility into their data and provides a unified workflow for quick execution and decision making. In other words, brands have improved budget visibility, marketing effectiveness, and resource allocation scenarios at their fingertips with the ability to quickly disseminate results throughout the company. This “learn fast, fail fast, and adjust” mentality is exactly what will help course correct in times of economic uncertainty.
This solution works for brands and agencies alike. While brands can apply a single workflow, the spirit of quickly adjusting easily applies to agencies and consultancies. Our marketing mix modeling process fosters stronger relationships between agencies and clients by improving their ability to reassess, pivot, and measure. Providing fast access to sales and marketing data means companies can react quickly and have a better grasp on weathering this storm.
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