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Marketing Mix Modeling • 1 min reading time

The 2 Truths of MMM

Brian Cusick - published on July 11, 2018

2 Truths and a Lie

1) Marketing Mix Models are just as much an analysis of business drivers as they are an analysis of media. TRUE.

Whether we call it Media Mix or Marketing Mix, the statistical models that estimate response curves and Return on Investment are business planning tools. They will always address more dynamics than simply media effectiveness. This fact remains true regardless of who does the analysis. 

STOP SPENDING $400 AN HOUR TO FIND YOUR IDEAL MARKETING MIX.

2) The right data is more important than the most data. TRUE.

Despite the prevalence of big data in discussions of marketing, in marketing mix modeling projects, it is more important to align the data being used to the decision being made than it is to use the most detailed or granular data that’s available.

3) Marketing Mix Modeling is something that should be outsourced to the experts. FALSE.

The person or group most well suited to build the MMM and run the optimizations is the group that is ultimately responsible for the planning and, in turn, responsible for growing the business.

ScanmarQED’s software empowers any analyst to learn MMM quickly and use it effectively. Lack of formal statistical training is no longer an excuse. Anyone planning media budgets without a firm grasp of MMM based optimization is failing to do their “marketing due diligence”.

 

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Brian Cusick

Brian Cusick leads the North American business unit for ScanmarQED, ensuring that both new and existing clients get the most value from our services and products. His expertise is in quantitative marketing research (previously worked at AC Nielsen, PepsiCo, Kraft Foods), with a focus on data driven business planning and marketing mix based optimization.