Gone is the time that Marketing Mix Modeling it was a solution aimed only at large advertisers, or only for those who invested in offline media.
Adapted to include data from various online platforms, macroeconomic analyses Sophisticated And the use of Machine Learning to predict and optimize sales performance in an unprecedented way, HMM It is, today, the most robust solution on the market for those who want to give more precision to the planning of their Marketing actions.
If you...
- Invest more than R$ 3MM a year in media
- works with many digital and offline ad platforms and formats
- It is difficult to say, with certainty, which shares are generating revenue for the company
- you are unable to follow your consumer holistically
- invest in full-funnel strategies
- Do you believe that conversion and last-click are not always the best path
... it may be a good time to consider Marketing Mix Modeling in your company.
What is needed for Marketing Mix Modeling to work?
Basically, you need to impute media data (KPIs and investment by channel), Business results data (leads, sales, revenue), control data (promotions, price, and revenue variables) and external data (competitors' investments, economic data, weather data, etc.) on the platform.
This data needs to be organized according to the model's needs - but don't worry, a team specialized in MMM will help you organize this data if you choose this path.
What information can the model provide?
Once the model is running, it can return some highly strategic information for your business.
The model of Uncover, specifically, works with the following metrics:
🧭 Media contribution: media contribution is our first and main modeling output, and it means how much - absolutely or as a percentage - each media variable represents of the analyzed variable (sales, revenues, leads...).
🚠 Channel saturation: It is the calculation of the model that estimates, according to the investment made in the analyzed period, which the ideal investment point to bring more leads/conversions, or if that media channel has already reached a performance limit.
🔄 ROI/ROAS [Return on Investment/Return on Ad Spend]: It's our media efficiency calculation, also called Uncover ROI. It tells us how much revenue was generated for each $ spent on a particular vehicle.
Example: If the ROI of Open TV is $1.50, it means that for every $1 invested in that vehicle, $1.50 was generated back to the brand in the form of revenue. When the ratio is 1 to 1, we call it a break-even.
Can Marketing Mix Modeling be used to measure Branding and Awareness campaigns?
Yes, through Adstock and specific variables related to brand strength, some MMM models can quantify the impact of recognition and consideration on lead generation.
In addition, Marketing Mix Modeling is ideal for optimize media allocation between channels, with the ability to analyze the impact of specific campaigns on ROAS and sales.
How do I know when it's time to invest in Marketing Mix Modeling?
There is no “right” time (for example, you must have an X result or given Y before going after an MMM). Yes, it is important that there is a frequency of investment, since the MMM works with historical data and, the more investment, the more data.
A good average investment in media is R$ 300,000 per month or R$ 3MM per year.
But more than that, what will tell you when it's time to invest in Marketing Mix Modeling are the questions that are hanging around your head.
For instance, are you wondering...
- What has driven my sales in recent months?
- How can I optimize my marketing investments?
- What was the ROI and ROAS generated by each investment I made?
- What percentage of total sales is media-driven?
- What is the most recommended budget allocation for each channel?
If so, it's time to turn to Marketing Mix Modeling to seek the answers (or more questions!).
You can contact our advisors hereto.
Are you interested in learning more about Marketing Mix Modeling and media optimization?
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