Marketing mix modelling seeing resurgence, finds Marketing Science Institute report

Marketing mix modelling (MMM) uses statistical analysis of historical information to estimate and forecast the impact of various marketing tactics on sales.

According to the MSI’s report, ‘Charting the Future of Marketing Mix Modeling Best Practices’, marketing mix models are experiencing a resurgence in response to factors including new privacy regulations restricting firms’ ability to employ individual-level data.

Advertisers use marketing mix models in three key areas, the research found: demonstrating that marketing contributes to top-line and bottom-line performance, forecasting and optimisation.

John Lynch, MSI executive director, said: “As MMM stages a resurgence, the landscape resembles a modern-day Wild West – a terrain teeming with new players touting pie-in-the-sky claims. Identifying credible, trustworthy solution providers poses a challenge for businesses seeking to maximise their marketing investments.”

Lynch added: “With the release of this report, we have commenced a multi-phase initiative to set industry standards for best practices in MMM. Developed by the pioneers of MMM, this report is the first phase in developing tools to help the industry and our members improve their MMMs."