A Complete Guide on Media Mix Modeling (MMM) | Top 5 Elements

Why do we need marketing? The answer is simple, marketing is the process of advertising yourself in the market, letting people know who you are, what your services or products are. We can say it is an initiative to maximise ROI in the sales, production and distribution of a product or service. And if we question what is effective marketing then the answer would be providing the right product or service at the right time, right place and making it available at the right price. Multitude of media channels from traditional media of televisions and radio to current digital platforms of social media and online advertising are open for marketing opportunities. Here Media Mix Modeling comes into the limelight.

Media mix modeling(MMM) came into the news in the year of 1949 by Neil H. Borden, who is a professor in Advertising at the Harvard Graduate School of Business Administration. It is a quantitative analysis method that evaluates various marketing channels' effectiveness in driving sales and conversions. As seen from past records, MMM helps businesses to take data-driven decisions. The decisions help in allocating their marketing budget at the right place to gain best results. In this blog, lets' delve into all about media mix modeling and highlighting the best in class elements.

What is Media Mix Modeling?

MMM is a technique of statistical analysis of marketing to evaluate various media channels' effectiveness  for driving specific business outcomes. MMM's advanced analytics allow marketers to understand how different media channels can combinly impact key performance indicators like ROI, customer acquisition along with sales. In simple language we can say it is a strategy utilised to check your paid media campaigns effectiveness.

Why is Media Mix Important?

Media mix strategy by a brand is utilised to track overall ROI and testing new campaigns. A brand should be open to a diverse mix of media ,so that the brand won't rely on all budgets in one method to reach a desired audience. Suppose one method is not working well, then the diverse mix strategy helps in balancing out the total ROI to choose or eliminate -ineffective options. As digital advertising is a dynamic field, it is utmost important to test and evolve your strategy.

How does MMM work?

It utilises multi-linear regression help in identifying how different types of advertising are going to affect your business success. It looks at the past data of all advertising mediums and calculates the changes on different channels driven for best results.

Media Mix Modeling Steps:

1. Define a campaign or product's business goals and objectives

2. Gather information through sales data, consumer behaviour or from different media exposure.

3. Clear data for instance remove outliers, check missing values, create appropriate variables for better analysis.

4. Use the statistical software to let media exposure to business results and estimate the model parameters by using data.

5. Compare the model's predictions with real outcomes. To do this you may need to split the data into a training set and test set or use it for cross validation techniques.

6. Collect different media mixes to compare predicted outcomes. Use optimization techniques to get the optimal mix of media.

5 Best-in-Class Elements of Media Mix Modeling

1. Data Collection and Integration

In this MMM's first step, the data is collected and integrated from various sources for instance marketing spend, sales data and from different marketing channels' performance metrics. Accurate and high quality data is always necessary for an analysis.

At Teldrip, the advanced analytics capabilities help businesses to gather, integrate and consolidate data into a single and comprehensive data set.

2. Statistical Modeling

After data collection, the statistical models work in analysing the relationship between marketing spend and sales conversions. For identity patterns and correlations in the data depends on the techniques like regression and time-series analysis.

Teldrip's tool helps businesses to build and customise these statistical models to choose the specific needs, by ensuring accurate and actionable insights.

3. Attribution Modeling

This modeling works on assigning credit to different marketing touchpoints for customer journey. It makes businesses understand how each marketing channel contributes to sales and conversions.

Teldrip's offered multiple attribution models of first touch, last-touch, and multi-touch in business for better understanding on customer engagement and channel effectiveness.

4. Optimization and Scenario Planning

Media Mix Modeling also includes future planning  with analysing the past performance. The scenario and optimization planning make businesses to simulate different budget allocations and marketing strategies to identify the most effective approach. 
Teldrip platform lets businesses optimise their marketing budgets and maximise ROI strategies even during "What-if '' conditions.

5. Consistent Monitoring and Iteration

Monitoring and Iteration are the final elements available at best-in-class in MMM. As the marketing field is evolving from time to time, it is bringing consistent changes in the new channels, technologies, and customer behaviours.

Teldrip's real-time monitoring and consumer behaviours allow businesses to track performance, identify areas for improvement, and adapt their strategies. The tracking tools at Teldrip ensures their MMM models to be relevant and effective with the changing time.

Media Mix Modeling with Teldrip

When marketing receives full attribution for the campaigns to drive sales, MMM became the most successful attribution. If any sales are happening through offline or  phone calls to your contact centre then you might miss the full picture on attribution. Teldrip's marketing attribution solutions help in filling the gap between attribution models. Teldrip's call tracking software easily develops your marketing performance and media channels' conversions to drive results from both digital clicks and calls. So that you can justify your marketing spend from attribution modeling.

Final Thought

Media Mix Modeling is a distinguished analytical approach that helps businesses for optimising their marketing efforts across various channels. MMM's data-driven insights and advanced analytics tools enable businesses to bring out informed decisions,drive sales, maximise ROI, and conversions effectively. The five best-in-class elements provide a comprehensive business framework to achieve success in this competitive market. Teldrip's cutting-edge marketing analytics platform enables businesses to enhance each element to give accurate predictions, gain deeper insights, and optimise marketing strategies to gain maximum success. Incorporating Teldrip into Media mix modelling efforts, businesses can stand alone in the competition, achieve their marketing objectives, through drive sustainable growth.