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Marketing Mix Modeling

Quickly build robust & reliable models to make smarter business decisions

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AI Driven Marketing Mix Modeling

Launched in 2006, Our Marketing Mix Modeling software was the first in the industry to harness machine-learning techniques to speed up the model-building process, resulting in huge time savings compared with traditional approaches. 

Built by practitioners, we offer practical tools to speed up the steps that slow things down so you can focus more of your attention on the interpretation and actionability of the results.

A truly flexible solution

Whether you are looking to run Marketing Mix Modeling and Planning in-house or want to work with a partner who will manage the process for you, our solution provides flexibility, transparency and focuses on continuous improvement and insight creation.

Outsourced

Our experienced team can run the process for you from end-to-end; handling the data and delivering you actionable recommendations.

​We provide: Private cloud, Data management and harmonization, Modeling and Dashboard services.

You provide: Internal Point of Contact, Management of data vendors.

Hybrid

Whether it’s helping to build out an in-house capability, relieving resource bottlenecks or providing an external sounding board, we provide the software and support model for a successful collaboration. ​

 

 

 

In-House

If you are looking to create an internal solution, you can use our tools to quickly build a marketing measurement process.

We provide: Technologies, Extensive training, Technical support.

You provide: Data management, Analytical Personnel.

 

Highlights of our MMM solutions

Scalable and repeatable Marketing Mix Modeling

Create consistent outputs across brands.

A sound approach to MMM

Any team can learn, and we provide a top-tier support team to train users and build your internal capability. 

Transparency and ease of use

No black boxes, and users can build models without touching the keyboard!

Our Products

Strata

strataQED

Create advanced marketing mix models that analyze past performance and help you understand what’s working and what’s not from your marketing investments.

 

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PortfolioQED-1

portfolioQED

Optimise marketing budgets across tactics, brands and markets by combining existing marketing effectiveness insights with your internal forecasts.

 

 

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OptimisedQED

optimiseQED

Accurately determine the amount of marketing spend required to achieve targets and boost marketing return-on-investment (MROI).

 

 

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Discover how our innovative solutions can transform your business with a live demo.

Why your business could benefit from Marketing Mix Modeling

Are you confident that your marketing investments in 2024 are delivering the best possible returns? While marketing spend is a significant component of a company’s overall budget, it is often the least understood outside of the marketing function. Therefore, marketers are facing more pressure to maximize marketing ROI and justify the investment. Therefore, it's critical to understand your marketing strategies' effectiveness.

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Recent studies show that businesses that optimize their marketing mix in a data-driven way can increase ROI up to 20%. Every dollar counts in the market, so making informed decisions is critical. This is where Marketing Mix Modeling (MMM) comes into play. MMM analyzes historical data and predicts future trends; it helps businesses optimize their marketing spend and improve performance in an actionable way. Let's discuss how Marketing Mix Modeling can improve your marketing strategy and the key benefits it offers, as well as how ScanmarQED's advanced marketing optimization software can help you build better media mix models in-house.  

What is Marketing Mix Modeling?

Marketing Mix Modeling (MMM) is a statistical analysis technique. It estimates the impact of marketing tactics on sales and profits. Marketing mix modeling analyzes past data to gauge each element's impact on company performance. By finding these relationships, businesses can spend their marketing budgets better. They can also improve their strategies and get better results. 

The Core Components of MMM

  1. Data: Historical data from many sources is needed in a structured and harmonized way. These include sales, marketing spend, market conditions, and external factors. This step is critical as the quality of the data directly affects the accuracy of the model. Data can be collected from multiple channels, such as social media, TV ads, digital campaigns, and in-store promotions.
  2. MMM Models Building: Using statistical methods to build models that quantify the impact of different marketing activities on sales. People commonly use techniques such as regression analysis and machine learning algorithms. These models help us understand the cause-and-effect link. It shows how each marketing driver affects sales.
  3. Analysis and Insights: Interpreting the model results to gain insights into the effectiveness of marketing tactics. Identify which marketing channels drive sales. Understand how increased spending in specific areas yields diminishing returns. These insights can be used to refine and improve marketing strategies continuously.
  4. Optimization: Adjusting marketing strategies based on insights to maximize ROI. In this step, you will move funds, adjust campaigns, and try new marketing mixes. You will do this to find the best strategies. Optimization is an ongoing process that requires regular monitoring and change.  

Benefits of Marketing Mix Modeling

Implementing Marketing Mix Modeling offers several significant advantages:  

  • Informed Decision-Making: MMM provides data-driven insights. They let marketers make informed decisions, not rely on intuition. For instance, a business might find that raising social media ad spend pays off. It pays off more than TV ads.
  • Budget Optimization: By understanding which marketing activities yield the highest returns, businesses can allocate their budgets more efficiently. This can lead to significant cost savings and better utilization of marketing resources.
  • Performance Tracking: Marketing Mix Modeling enables continuous monitoring and evaluation of marketing performance, facilitating timely adjustments. Businesses can track the impact of their marketing efforts in real-time and make necessary changes to improve effectiveness.
  • Risk Reduction: By predicting the outcomes of various marketing scenarios, MMM helps reduce the risk associated with marketing investments. Companies can simulate different strategies and choose the ones with the highest probability of success. 

Key elements for modern MMM

MMM has evolved rapidly over the last decade. Modern Marketing Mix Modeling automate many of the above steps and make outcomes much faster available for marketers than the legacy approaches that are often slow and expensive. Key elements to modern MMM are:  

  • Automate data management and processing as much as possible 
  • Avoid black boxes and rather choose for a guided modeling approach that uses AI and simplified workflows.  
  • Aim for reporting software that allow for rapid analysis (hours), meaning near-time decisions can be insight-led 
  • Use forecasting and optimization tools that aid decision making 

Most importantly, design for scale – automate data, modeling, analysis, forecasting and reporting for greater returns!  

Trends in Marketing Mix Modeling techniques

Modern Marketing Mix Modeling (MMM) techniques have evolved significantly, incorporating advanced methodologies trying to enhance accuracy and granularity. Key approaches include:

Daily MMM Nested Modeling Triangulation Bayesian MMM
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Daily MMM

Traditional MMM often used weekly or monthly data, but daily MMM can capture more granular fluctuations in marketing performance. This increased frequency enables marketers to detect short-term effects and seasonal patterns more precisely, improving the model’s responsiveness to dynamic market conditions. 

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Nested Modeling

This approach integrates different levels of data granularity within a single model. For example, a nested model might include both brand-level and product-level data, capturing interactions and hierarchies within the marketing mix. This multi-level analysis provides a more comprehensive view of how various marketing activities influence outcomes across different dimensions. 

Universal Attribution (6)

Triangulation

Also known as Unified Marketing Measurement (UMM), this involves combining Multi-Touch Attribution (MTA), experimental data, and MMM to validate findings and provide a holistic view of marketing effectiveness. By integrating these diverse methodologies, triangulation ensures more accurate and comprehensive insights, capturing both immediate and long-term effects of marketing activities. 

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Bayesian MMM

This technique employs Bayesian statistics to estimate the impact of marketing activities. It allows for incorporating prior knowledge and updating beliefs as new data becomes available, leading to more robust and adaptive models. Bayesian methods also facilitate uncertainty quantification, providing a probabilistic framework for decision-making. 

All these techniques provides new opportunities but are also imposing risks by increased complexity. This can make them difficult to implement and interpret correctly, potentially leading to errors if not handled correctly. Therefore, it is more than ever important to select the right modeling technique for your business and needs. Seek the right partner to support you with this - ScanmarQED is here to help.  

How ScanmarQED enhances MMM

ScanmarQED's marketing optimization software offers robust tools to streamline the Marketing Mix Modeling process. Our platform has advanced analytics, easy-to-use interfaces and thorough data management capabilities.  

Key Features of ScanmarQED’s Software

Data Management: It effortlessly cleans, harmonizes, and organizes all your important, but scattered, data sets quickly and automatically.  

Machine Learning Engine: The machine learning engine helps to sift through the data to identify potential models from the data provided. 

Model Search: The genetic algorithm tests all models and identifies the best one for your marketing purposes.

Dashboard Reporting: Deploy your models to the reporting dashboards and have them available to everyone, anywhere, at any time.

Optimization Tools: Models can be deployed to the optimization tools to make well-informed decisions on your marketing budget.

Model Updater: As new data flows in, our powerful model updater refreshes your Marketing Mix Models automatically. 

Quick and Easy to Learn: Our software is quick to learn and easy to use.  

Building better Media Mix Models

Creating effective media mix models is crucial for optimizing your marketing efforts. Here’s how to ensure your models are robust and actionable. 

Steps to Build Effective MMM Models

  1. Define Objectives: Clearly outline the goals of your marketing campaign. Understanding the main goals is essential. These goals include increasing brand awareness, boosting sales, or launching a new product. They are essential for building a relevant model. 
  2. Select Relevant Data: Choose the most pertinent data sources to include in your model. This includes sales data, marketing spend, competitor activities, and macroeconomic factors. Ensuring that the data is clean and accurate is crucial for model accuracy. 
  3. MMM Models Calibration: Continuously adjust the model parameters to improve accuracy. Calibration involves refining the model. This is based on new data and insights. It is to ensure the model remains relevant and reliable over time. 
  4. Scenario Analysis: Test various scenarios to predict potential outcomes and refine strategies. Scenario analysis helps understand the impact of different marketing strategies. It helps in choosing the most effective one. 

Challenges in Implementing MMM

While Marketing Mix Modeling offers substantial benefits, it also comes with challenges: 

  1. Data Quality: Ensuring the accuracy and completeness of data is paramount. Poor data quality can lead to incorrect insights and ineffective strategies. 
  2. Model Complexity: Building and interpreting complex models requires specialized expertise. Businesses may need to invest in training or hire experts to effectively use MMM.
  3. Integration with Other Tools: Seamlessly integrating MMM with other marketing tools can be challenging but necessary for a comprehensive approach. Ensuring compatibility and data flow between different systems is essential for smooth operations.   

Best Practices for Successful MMM

To maximize your Marketing Mix Modeling's effectiveness, follow these best practices: 

  1. Invest in Quality Data: High-quality data is the foundation of accurate models. Regularly update and clean your data to maintain its integrity.
  2. Continuous Learning: Stay updated with the latest advancements in modeling techniques and tools. Data science is rapidly evolving. Staying updated on new developments can be a competitive edge. 
  3. Collaborative Approach: Involve cross-functional teams to gain diverse insights and perspectives. Teams from marketing, finance, and data science can work together effectively. This can lead to more comprehensive and better models.   

Regularly review and adjust your models. Keep them up to date as the market changes. Regular reviews keep your models relevant and accurate as markets change. 

Case study: successful MMM implementation

ScanmarQED has helped numerous companies enhance their marketing performance through effective Marketing Mix Modeling implementation. One notable example involves a leading US  consumer services company.   

The company faced significant challenges with their legacy internal modeling processes, which consumed excessive "people time" and yielded inconsistent results upon each update, resulting in insights that were not actionable. In addition, it was facing declining returns on investment in its marketing spend. It turned to ScanmarQED for a solution.

Through working together with the internal analytics department, ScanmarQED identified the source of the problems and implemented solutions. This included the processing of their internal and external data, the type and structure of the models, the approach to optimization, and the overall MMM workflow (roles, steps, etc.). We subsequently built all initial models, set up and ran budget optimizations, wrote and presented results to leadership, and then helped them to design an ongoing work plan. 

Improved data engineering saves 40+ working hours per model update, and it improves data accuracy. Time savings led to more high-value modeling hours, more frequent updates and providing additional business insights from more models, including more brands and addressing strategic questions. 

The company experienced increased ROI up to 15% in 6 out of the 7 quarters that were planned via our MMM software and process. By consistently identifying what is driving growth (or decline), teams are now able to focus on actions rather than explanations. 

This case demonstrates the power of Marketing Mix Modeling. It can drive substantial boosts in marketing efficiency and effectiveness.

Why choosing for ScanmarQED’s marketing optimization software? 

Elevate Your Marketing Strategy

Marketing Mix Modeling is invaluable for today’s businesses. It is needed to optimize marketing and maximize ROI. By leveraging the power of data and advanced analytics, MMM provides actionable insights that drive better decision-making and improved performance. ScanmarQED’s marketing optimization software simplifies the MMM process. It offers a complete solution to build good media mix models in a fast and scalable way. Embrace Marketing Mix Modeling today and it will take your marketing to the next level.  

Maximize Growth

Utilizing ScanmarQED's marketing optimization software enables businesses to seamlessly integrate their data, analyze complex patterns, and derive actionable insights to identify your best performing marketing channels. It shows how each marketing activity affects sales and profits and enables you to make timely adjustments to your marketing strategy. This ensures that every dollar spent contributes to your business's growth.  

Stay Ahead

Moreover, ScanmarQED’s software is designed to be user-friendly, making it accessible for marketers at all levels of expertise. Our comprehensive data integration capabilities ensure that you have a holistic view of your marketing performance, enabling you to make informed decisions quickly and efficiently. You must continuously monitor and refine your marketing mix. Our Model Updater provides you with the latest insights on your marketing performance as new data flows in. This way, you can stay ahead of market trends and keep a competitive edge.  


For more info and to see how ScanmarQED can help you, request a demo today. Discover how our tools can change your marketing strategy and boost your ROI.