What is media mix modeling or marketing mix modeling?

What is media mix modeling or marketing mix modeling, in 90 seconds?

Marketing mix modeling is an analytical technique used to quantify the value of marketing on sales.

It’s very different from tracking-based marketing measurement, which uses cookies or mobile ad IDs or UTMs or referrers or even other identifiers to correlate what people who see an ad do. Instead of tracking people’s behavior, MMM establishes a baseline of sales activity, then correlates changes in that to marketing campaigns, advertising campaigns, and other external factors.

MMM is probabilistic, not deterministic, but done well, MMM helps you extrapolate insights into the impact of your marketing campaigns that last-click tracking methods can’t possibly supply.

Another huge benefit of MMM is that it’s entirely privacy-safe.

There are some downsides as well. One is that it requires a lot of data, and isn’t as immediate as tracking-based measurement, or even newer privacy-friendly attribution like Apple’s SKAdNetwork and Google’s Privacy Sandbox. It also isn’t granular, so creative analytics are tough if not impossible to get.

But MMM does provide a good indication of incrementality, and in combination with other attribution methodologies, it can be a key tool in the marketers’ toolbox to fully understand marketing impact. It’s also something that Singular can basically almost automate for you.

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