Marketing mix model (MMM) along with data-driven attribution are the two measurement best practices employed by marketers. Especially as MMM provides a rather holistic view on the impact of marketing investments on business, it has emerged as one of the most preferred tools by marketers. Typically a marketing strategy is a mix of various online and offline activities. The four Ps – namely – Price, Product, Place, and Promotion, are considered by the MMM to quantify and provide deep insights on cross channel promotions.
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Shortcomings in the Traditional Marketing Mix Model
Critics have often pointed out how the traditional marketing mix model is slow and a costly process. Also in spite of being a deciding factor in the quarterly and annual budget allocation process, the traditional model fails at providing actionable insights on a real-time basis.
How is Digital Data Improving MMM?
The direct result of digitization has been that there is a ready availability of digital data. Modern MMM leverages this digital data attribution to assess which marketing plan has benefited the business and enables better marketing budget allocation. Tools like Google attribution 360 enhance the performance of the model by providing a top-down analysis of the data. This kind of input at the granular level helps marketers optimize their advertising strategy. Even time-series marketing data like economic and seasonal data sets are taken into consideration by MMM for an accurate analysis of the marketing plan.
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So, digital data adds an edge and sharpness to MMM, which was missing in its traditional version.
Contrary to popular belief, digital analysis alone is not sufficient to get a realistic picture on the performance of the marketing strategy. Rather it is recommended that data driven attribution, along with MMM be adopted to capture the results of online and offline marketing channels. Even factors like external influence, seasonality of products, along with competitive actions required, are considered by the modern MMM.
Even though many industry experts proclaim that MMM is a dead marketing strategy when backed with digital data attribution this model is sure to enhance marketing plans and bring in better ROI.