Marketing mix modeling (MMM)
DefinitionPaid Media
Marketing mix modeling (MMM)
Econometric modelling that estimates each marketing and non-marketing input's contribution to sales from historical data - media by channel, price, promotions, seasonality, competitors. The privacy-proof complement to attribution, strongest read at the budget level rather than the ad level.
Evidence from the library
Marketing mix modelling has grown too complex for human judgment alone - the useful AI layer is a plain-English front end for CMOs to ask what to change next quarter.PrincipleMarketing measures itself on only one side of the profit equationPrincipleShifting the mix toward performance year after year drags base sales down with itWarningx12Creative quality is the largest profitability multiplier a marketer can actually changeStatPlan the media mix monthly, reallocate weekly, and keep a no-strings testing poolPrinciple
Source
Marketing Definitions
standard econometric practice, revived post-privacy; Nielsen/Kantar tradition