Marketing Mix Modelling
Harnessing data through MMM to optimise your P&L
What is Marketing Mix Modelling (MMM)?
Marketing measurement is undergoing significant change currently. For example, digital attribution is becoming increasingly unreliable due to privacy interventions by Apple and restrictions on cookie availability.
Due to this more and more brands are using marketing mix modelling (also known as MMM or econometrics). It is a set of statistical analysis techniques applied to marketing or sales data to estimate the impact of various marketing activities. It will usually 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.
What we do
- 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.
If you use OOH media it is essential you are aware of the Entropy MMM data standard
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.
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?
Why are we different?
- We are leading change in the MMM industry For example read the summary of our ground breaking project “Maximising the impact of OOH” which is changing how the entire OOH industry executes MMM
- Significant experience We’ve supported multiple global companies with media testing and MMM across a broad range of industries – client side, agency side and independently
- Independence Entropy is self-owned, totally agnostic and here to help you grow your business profitably
- Great value for money We’ve very low overheads, so can offer much higher level of senior consultancy and day-to-day support at a lower cost than larger providers – important to really land the work
- Customised solution to suit your needs and ensure you have the rights insights to make the right decisions
- Our work is delivered by highly experienced econometricians