How to unlock the full potential of Marketing Mix Modeling: The crucial role of Campaign Dimensions

Marketing Mix Modeling, or MMM, is becoming the go-to tool for more and more companies looking to optimize their marketing efforts. It's a method that uses statistical analysis to figure out how marketing investments contribute to sales.

Despite its growing popularity, many companies using MMM are not getting the full benefit. Why? Because their MMM solution is not able to provide insights on campaign-level.

In this article, “campaign” refers to larger marketing campaigns leveraging multiple media (as opposed to ad platform-level campaigns).

Why are campaign insights important in MMM?

If you don’t have campaign insights in your MMM, you will have two problems.

Firstly, your backward-looking performance analysis is limited to media performance. You are able to do high-level media performance comparisons on (e.g., TV vs Facebook), but you can’t compare a medium’s performance in certain types of campaigns (e.g., how did TV perform in Black Friday week campaign vs. Summer campaign).

Secondly, MMM is not able provide you campaign-specific budget recommendations. As an example you might get similar budget recommendations for performance campaigns and branding campaigns.

Ultimately, this makes it harder for you to learn from your historical campaigns, and deploy your marketing budget effectively when planning different campaigns types.

Lets look at a concrete example:

The image above is an example from Sellforte demo on how Campaign and media performance can be analyzed in MMM. The graph on the left shows ROI of different campaigns, and the graph on the right shows a deep-dive to the ROI of different media within the Summer campaign. With these views, the user can:

• Compare ROI of different campaigns to learn which campaigns are performing best
• Compare ROI of media within the campaigns to learn which media are working well in different campaign types

Conclusion

Including campaigns insights in Marketing Mix Modeling (MMM) is crucial for making more effective marketing decisions. This way companies can analyze their marketing performance not just by the media channels they use, but also by the specific campaigns they run.

Integrating campaign-specific data into MMM can help businesses can gain deeper insights into which strategies work best for the different types of campaigns. This enables them to allocate their budgets more effectively and tailor their marketing efforts to maximize ROI.

It's essential for companies to reassess their current MMM strategy. If your MMM lacks this level of detail, you might be missing out on critical insights that could dramatically improve your marketing effectiveness.

Ultimately, we encourage you to upgrade your MMM service and include campaign dimensions in your analysis.

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