Weekly MMMs?
Some prospective clients ask us:
● How frequently should they update their MMM models?
● Is a weekly cadence ok?
Well it depends. There are business reasons as well as technical.
📈 Business reason:
Whether weekly MMM is ideal depends on the industry. If you are a digital focused brand with high frequency of short term campaigns, then it makes sense to update the models weekly or monthly.
But if you are focused on brand marketing, you would not be able to see substantial changes in weekly updates.
Most brand building activities take time to reflect in the incremental sales.
🛠 Technical reason:
Coming to the technical reasons, some of the carryover effects and diminishing effects for certain media like TV, won’t change substantially at a weekly cadence.
With CPG brands focused on Trade promotions, usually trade promotion and instore budget planning is done at a quarterly level.
Most often the spends are divided by 3 to reflect the same amount for 3 months. Doing a weekly update in such cases would result in a poor model.
Bottomline:
The same rule doesn’t apply to all the brands. That is why MMM is so tricky to get right.
