Ad tech glossary

Decomposition Analysis

Technical definition

Breaking down total business performance into constituent contributing factors to understand the relative impact of different marketing and non-marketing drivers.

The ADLINGO translation

Separating what drove your sales results into distinct contributing factors: media, pricing, distribution, seasonality, competitive activity, macro conditions. The goal is isolating the marketing contribution from everything else that moved the number. MMM typically produces decomposition outputs. The value is in knowing which levers actually worked. The risk is over-crediting media when the real driver was a competitor going out of stock.

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