Marketing
Mix Modelling

We bring client-side marketing expertise, radical transparency and a challenger mindset to MMM – helping you understand what is really driving performance and make sharper P&L decisions.

What is Marketing Mix Modelling (MMM)?

Marketing Mix Modelling, or MMM, is a statistical approach used to understand how marketing and other business factors contribute to sales, revenue or other commercial outcomes.

It uses historical data to estimate the impact of factors such as media investment, pricing, promotions, distribution, seasonality, competitor activity and wider market conditions.

MMM is typically used to understand marketing effectiveness, compare returns across channels and help decide where future budgets should be invested.

Unlike digital attribution, MMM does not rely on tracking individual customers across platforms. That makes it particularly useful as privacy changes, fragmented customer journeys and restrictions on tracking have made attribution less complete.

But measurement on its own is not the end goal.

MMM should lead to better decisions

A good MMM programme should do more than produce a model and a set of ROI numbers. It should help you understand what is driving performance, where the opportunities lie and what you should do differently as a result.

That means looking beyond media where it matters. Pricing, promotions, distribution, competitors and wider market conditions can all be important drivers of performance and all can lead to action.

MMM is often most valuable as part of a wider effectiveness programme, alongside testing, attribution, brand measurement and other sources of evidence.

Our approach

We combine data science with senior client-side marketing experience so the work is built around the decisions marketers actually need to make.

We are transparent about how our models are built, the assumptions behind them and what the analysis can and cannot tell you.

And we focus on making the work useful beyond the analytics team, helping marketers, finance teams and senior decision-makers turn the evidence into clearer choices about investment, planning and what to test next.

Where MMM is only part of the answer, we can also help design the wider effectiveness framework around it.

How are we different?

We have been in your shoes.

Our client-side experience means the people working on your project understand the pressures, questions and decisions your marketing stakeholders face. We know what information you need, how it needs to be presented and who else in the organisation needs to be brought with you.

Our team brings client-side marketing, media and digital experience from brands including Argos, Unilever, Kellogg’s, American Express, Danone and TK Maxx, alongside deep econometric expertise. That combination helps us turn analysis into clear, commercially useful recommendations.

We are quicker and more cost effective.

Unlike legacy MMM providers, we aren’t hamstrung by significant platform fees or drawn out processes. We are a nimble team, embracing advances in tech that enable us to provide meaningful insights within weeks not months.

Plus, with lower overheads we can perform full Marketing Mix Modelling projects much more cost effectively than our competitors.

We believe in explaining our workings.

Marketing Mix Modelling is not magic, it’s statistics. Our econometricians are more than able to explain the different processes and decisions made in the modelling process and are happy to do so.

We want to make sure you and your team fully understand and trust the results we show you – not to be like a black box, blinding you with jargon.

We help turn measurement into action.

We don’t stop at the model output. We help translate the evidence into decisions about investment, planning and what to test next.

Where MMM is only part of the picture, we can also help connect it with testing, attribution, brand measurement and other evidence as part of a wider effectiveness programme.

How are we different?

We have been in your shoes.

Our team brings client-side marketing and media experience from brands including Argos, Unilever, Kellogg’s, American Express, TK Maxx and Danone, alongside deep econometric expertise. That combination helps us turn analysis into clear, commercially useful recommendations.

We are quicker and more cost effective.

Plus, with lower over-heads we can perform full Marketing Mix Modelling projects much more cost effectively than our competitors.

We believe in explaining our workings.

Marketing Mix Modelling is not magic, it’s statistics. Our econometricians are more than able to explain the different processes and decisions made in the modelling process and are happy to do so.

We want to make sure you and your team fully understand and trust the results you are shown – not to act like a black box and blind you with jargon.

We help turn measurement into action.

We do not stop at the model or the readout. We help translate the evidence into decisions about investment, planning and what to test next.

Where MMM is only part of the picture, we can also help connect it with testing, attribution, brand measurement and other evidence as part of a wider effectiveness programme.

We are pioneering change in the MMM industry

At Entropy we like a knotty measurement problem. As well as working with our clients to maximise the P&L impact of their spend we also act as a catalyst for change in the industry.

Below are some examples of recent projects we’ve been involved in.

Trading on Viewability

We were the first entity in 2018 to develop best practice and guidelines for the ad trade body ISBA for how brands can trade on viewable impressions.

Out-of-home

We developed the industry’s best practice guidelines for out-of-home MMM. Our standard was subsequently adopted by the ad trade bodies ISBA and Outsmart.

Radio

We worked with ISBA to develop best practice for planning radio based on our MMM studies.

Influencer & Retail Media

We’ve developed best practice for ISBA members to measure incrementality for retail media and influencers.

MMM Case Studies

MMM: our insights enabled Percival to adapt their media plan – in particular, broadening the range of media channels – to deliver an incremental advertising ROI increase c.20% and almost doubling D2C sales.

MMM: Mitchells & Butlers are one of the largest operators of restaurants, pubs and bars in the UK. Their brands include Harvester, Toby Carvery and Miller & Carter.