Marketing Mix Modelling
Measure effectiveness of media plans
What is Marketing Mix Modelling ?
Marketing Mix Modelling uses statistical analysis to correlate (“attribute”) sales on media investments. Media Mix Modelling (MMM) is a powerful tool when it comes to optimising a media or marketing strategy.
The most common outcome is an understanding of the contribution and ROI of each channel (including offline) on sales.
Statistical attribution
MMM is a method which attributes sales to media strategies, offline included.
Use MMM to answer questions about your media strategy
Marketing mix modelling is both an evaluation and a planning tool.
Evaluation questions answered
- What media is the most effective? Media has the broadest meaning, we can evaluate the effectiveness of all paid, owned and earned media.
- How many sales are “natural”? (meaning they would happen without any media investment)
- What is the global ROI of paid media investments?
- What is the ROI per channel?
- What is the optimal level of investment? …
Planning & optimisation tool
Once the ROI per channel is done, we are able to make scenarios and choose the optimum in terms of investments.
The only media measurement framework that is fully GDPR-compliant
You may use digital marketing attribution tools, which tracks consumers from impression to conversion. Those techniques are at best biased, at worst illegal. We don’t use any personal data to track media ROI : we just look at business data such as media investments and number of sales.
We have a clear process that includes several stages:
Data
Understanding of media plans and data. Together we identify what drives sales from media, marketing, business and contextual perspectives.
Model
We use data science to model the dependent variable (sales or revenue) with the independent variables, identified in the previous step.
Optimize
We use those insights and look for optimisation perspectives of your budget.
A Continuous Process
Traditionally, MMM projects are long-term endeavors. We built a platform that allows refreshing with new data every two weeks or every month. Therefore, Marketing Mix Modeling can be integrated into a standard digital marketing process (e.g., bi-weekly reviews).
LYKTA, your ideal MMM partner
We have the required media knowledge
A perfect understanding of all media metrics is required to analyze and process media data. You don’t want to mix gross digital investments with TV net investments, which include your media agency fee.
We have experience in media portfolio management, both online & offline.
We handle in your best interest
Attribution and ROI measurement is most often driven by media agencies or media partners such as Google. However, the remuneration of both depends on the advertiser’s media investment. This creates a clear conflict of interest. How can they advise you not to invest or reduce investments if necessary? How can you be sure they don’t receive incentives or additional commissions based on the media plan?
Our primary concern is to guide you in your best interest. Our remuneration remains the same, whether you invest or not.
Therefore, our transparency is absolute.
