Marketing Mix Modelling / Econometrics consultancy

We’ll work with you to develop the right capability, processes and KPIs to ensure that you maximise your revenue, profit and ROI.

What is Marketing Mix Modelling (MMM)?

Marketing mix modelling (also known as MMM or econometrics) 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 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”.

A common misconception we come across is that you can’t measure the ROI of various digital channels via MMM. We’ve come across many big brands in various sectors that have believed this.
 

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.

Digital marketing attribution

To attribute digital marketing sales optimally you should consider digital attribution modelling.

Learn how we can develop the model right for your organisation here.

What our clients say

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Some of our team

Dan is a respected econometrician and analytics leader with 20+ years’ experience in the marketing effectiveness field. Dan spent the first 7 years of his career at Gain Theory (ohal), one of the most established and biggest marketing mix modelling agencies globally. Whilst there, he led projects for some of the world’s best known brands in FMCG/CPG, Retail, Telecoms and Leisure. This was followed by 10 years at Kellogg’s, where Dan was Director of Marketing Effectiveness and Business Analytics for EMEA.

Dan Rimmer

Econometrician

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.

Alex Tait

Founder

Case Studies

Freesat
Freesat is a digital satellite TV service offering over 200 channels and popular On Demand services. The business is backed by ITV and the BBC.
Mitchells & Butlers
Mitchell & Butlers are one of the largest operators of restaurants, pubs and bars in the UK.