A Marketing Mix Model, the next step for your marketing department?
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Imagine: your marketing approach is a football team. In the front are the Performance Ads. In the center of the defense are SEO & branding campaigns and in the midfield, email marketing together with social media ads are doing their best to make the marketing team work. And with success.
You, as the team’s coach, are constantly looking for the right team composition. A bit more branding or more performance advertising. Depending on the challenge, you adapt the team.
When someone asks you: which player is the best and the most important? What do you say?
Are you going for the striker? You can easily link the results to the advertisements. Or more for the defenders; SEO & branding campaigns . A difficult question to answer as a coach. After all, it is a team that, through the right interaction, achieves the desired result.
Fortunately, the marketing world does not stand still and there are more and more possibilities to gain insights. The use of a Marketing Mix Model is increasingly emerging. In this article I will discuss the developments of attribution towards Marketing Mix Model. I will explain what it is, the advantages and disadvantages of such an MMM and which steps you need to get started.
From single-touch to multi-touch to Marketing Mix Model
In 2019 I wrote an article about attribution . In that article I outlined a so-called ‘ buyer journey ‘ in which different channels influence the final conversion to customer. But which of those channels is the most important? list of norway consumer email Think of it as the 2019 version of the football team analogy. In that article I discussed quite simple and relatively dumb attribution models: single-touch & multi-touch attribution models.
Briefly what are those models again?
The simplest form of an attribution model is the single-touch model. This essentially assumes that one channel is responsible for 100% of the turnover. An outdated model now, but you have to start somewhere. how marcom professionals use ai in their work [infographic] Further development eventually led to multi-touch attribution models.
These models take more account of time, different channels and the value of the channel. However, these are often predefined values for a channel and moment in the journey. In other words: when someone converts from lead to MQL (marketing qualified lead) by an email, email is assigned 35% of the turnover value. While this can also be a result of a sum of other channels.
Multi-touch attribution is an improvement over single-touch, america email list but still limited and quite rigid. Especially considering that a journey towards the customer is increasingly happening with zero-clicks & dark social .
Marketing Mix Model – the next step
A Marketing Mix Model is an econometric model, based on multilinear regression, that helps quantify the impact of different marketing communications, channels and non-marketing communications on sales (or other business objective).
Simply put: an MMM is a model that gives you a lot of insight into the effectiveness.