Marketing Mix Modeling (MMM) and MTA are like X-ray into your marketing strategy.
Much like an X-ray. They tell you:
โ
Which strategy is broken.
โ
Is your revised strategy healing (performing) well.
โ
Does any anomaly point to future problems.
Given the recessionary trends worldwide, now more than ever MMM & MTA are the need of the hour for any organization.
I have had interesting chats with CMOs, CROs, Brand Managers, Performance Marketing Managers and Media Planners of late. This is what I glean from the conversations:
๐ก Being prudent with marketing spends.
Organizations want to be more prudent with their marketing spends in 2023.
They want to maintain same level of marketing spends and yet retain same (or higher) levels of sales (or other KPIs).
MMM is tailor made for scenarios like this. Budget optimization post MMM helps answer exactly this.
๐ก Data privacy laws led to slump in ad revenue, but MMM & MTA could be the way out of the doldrums.
Some organizations have reported slump in ad revenue due to increasing enforcement of data privacy laws. Google too has plans to scrap the third-party cookies by 2024.
MMM which does not require PII data, could be the ticket out of the doldrums.
๐กMMM will be the barometer every organization needs.
During these recessionary times, every organization would like to constantly measure their Marketing ROI. They would want to know how best to deploy their marketing budget into various marketing media. MMM is the best MROI or ROAS barometer.
As they say, every cloud has a silver lining. The upcoming financial tough times will perhaps make organizations adopt more prudent marketing strategies aided by good domain knowledge and data driven methods.
