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.
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”.