The statistical approach to understanding what your marketing actually drove. Feed in historical spend, sales data, and the external variables that affect your business. The model returns contribution estimates by channel. MMM works at the aggregate level. It tells you TV generally works, not which spot drove which sale. It also runs on lag, typically several months of data minimum. It is most useful for budget allocation decisions, not in-flight optimization. The output is only as good as the data going in.
Ad tech glossary
MMM (Marketing Mix Modeling)
Technical definition
A statistical analysis technique that uses historical data to estimate the impact of various marketing activities on sales and other business outcomes.
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