We have been selected as an MMM partner of the UK
advertiser trade body ISBA
Marketing Mix Modelling / Econometrics consultancy
Why are we different?
- Communication – we are a marketing as well as MMM consultancy. We will ensure our approach and findings are communicated into the most appropriate language for senior stakeholders in your business.
- Our work is completed and delivered personally by trusted and highly experienced. econometricians
- We’ve significant experience supporting global companies with MMM across a broad range of industries – client side, agency side and independently.
- We provide a customised solution – to suit your needs and to ensure you have the right insights to make the right decisions.
- Transparency – unlike most MMM agencies you will have complete access to the models and scenarios if you want them.
- Independence – Entropy is self-owned, totally agnostic and here to help you grow your business profitably.
- Great value for money – we have low overheads, so can offer much higher level of senior consultancy and day-to-day support at a lower cost than larger providers. This is important to really land the work.
- If you aren’t aware of the Entropy MMM data standard we are almost certain you’ll measure OOH performance incorrectly. We developed it working with all the stakeholders in the OOH industry in a project championed by the advertiser trade body ISBA. Read about the standard here.
What is Marketing Mix Modelling (MMM)?
Marketing measurement is undergoing significant change as digital attribution becomes a lot harder due to the phasing out of cookies. As a result marketing mix modelling (also known as MMM or econometrics) is becoming an increasingly important technique for most organisations.
MMM is a set of statistical analysis techniques applied to marketing or sales data to estimate the impact of various marketing activities. It will often be used to optimise the advertising mix and promotional tactics to increase ROI or incremental revenue.
The benefits for your organisation should be weighed against the costs but the fact of the matter is that in our experience many brands are missing out on a significant opportunity to maximise their ROI and incremental turnover by not conducting MMM.
We will work with you directly or alongside your MMM supplier to ensure that you measure all media correctly to give you as clear a picture as possible of how to optimise your spend.
We can work with you to ensure that you have advanced econometric models that can disaggregate and quantify all key drivers of historic sales including:
- ATL Advertising – TV, VOD, OOH, Press, Radio, Cinema, Digital (Online Video, Display, Programmatic, Mobile, Search SEM / SEO, Social, Influencers) and PR.
- BTL Advertising – Coupons, Sampling, Door Drops, In-Store Media, Direct Marketing (Mails/Emails), Affiliates and On / In Pack Promotions.
- In-Store Promotions – Promotional Mechanics/Offers, Special Packs and On / Off Shelf Display Support.
- Pricing– own price, competitor price, price relative to competitors and crossing of price thresholds.
- Distribution– changes in breadth and depth of distribution, facings, shelf position, new product launches and de-listings.
- Other non-controllable factors– competition, category trends, seasonality, holidays, weather, economy, national events and out of stocks.
Econometric model outputs provide clients with huge benefits including:
- A detailed understanding of the key drivers of business performance to date and the relative contribution of each one.
- Sales uplifts and return on investment metrics for each individual marketing and sales investment lever.
- Price and promotional elasticities.
- Quantification of the inter-dependencies between investment levers. For example, does TV advertising drive online search?
- What is the optimal mix of media channels?
- Is there a synergistic effect when synchronising TV with in-store promotions?
“But you can’t measure the ROI of digital via marketing mix modelling”.
It is true you need a certain dataset size to have a high level of statistical significance. However, often in this case either data is not being collected in line with best practice, or MMM is not being conducted effectively.
What our clients say
Contact us to find out more
Some of our team
Before Entropy Alex was the Marketing Services Director at Unilever. He has also worked in digital leadership roles at varied brands including American Express, Kellogg’s and The Post Office.