Margaux Media Mix Modeling, also known as MMM, is an analytical method that measures the impact of each marketing channel used in an advertising or communications campaign. This econometric approach relies on data analysis to assess the effectiveness of each advertising channel, such as TV, radio, social media, SEA or display.
Find out more about the uses of Media Mix Modeling, the benefits it can offer companies, and the methodology of such a study in this blog post.
Why use an MMM study?
MMM has become an essential tool for brands seeking to maximize their return on advertising investment. Indeed, by understanding how each channel influences consumer behavior, and using this information to optimize their communication strategy, companies can increase their advertising effectiveness while reducing costs.
In the age of cookieless, this study makes it possible to analyze one or more KPIs on the same measurement scale.
How does Admo.tv carry out a MMM study?
The methodology for Media Mix Modeling involves several key stages. These may vary according to the brand and its advertising campaign objectives (branding or performance). Here are the main stages of an MMM study:
- Data collection: The first step is to collect advertising spend by media analyzed and the results of the KPI you wish to study (for example: sales, conversions or website visits). The data must be broken down granularly, by the day, over a minimum 2-year history, to identify the contribution of each advertising channel to overall campaign performance.
- Data analysis: The data is then analyzed using statistical techniques. Linear regression is used to determine the impact of each advertising channel on campaign results. The analysis can also include external variables, such as seasonality or special events. These can have an impact on campaign performance (new store openings, advertising, etc.).
- Attribution of results: The results of the analysis are then attributed to each advertising channel to determine the contribution of each to overall campaign performance. This can be done using a marketing mix model or an attribution algorithm.
- Reporting and presentation of results: Our data scientists present the key insights of the study to the brand. They will answer any questions and may recommend adjustments or optimizations to the media mix.
- Strategy optimization: Using the results of analysis and attribution, brands can optimize their future communications strategy. They can therefore adjust their budget allocation for each channel accordingly.
What are the prerequisites for a successful MMM study?
A successful media mix modeling study requires high-quality, reliable data for each advertising channel analyzed. Accurate, daily and comprehensive data are essential for reliable results.
In addition, it’s important to surround yourself with a team of experienced data scientists with solid analytical skills, specialized in statistical modeling, data analysis and data visualization. At Admo.tv, our team relies on proven econometric calculations that have been constantly improved for over 8 years.
Why call on Admo.tv to carry out your MMM study?
The usefulness of MMM no longer needs to be proven. Admo.tv’s aim is to make this analysis affordable for as many brands as possible.
By offering quarterly or annual studies (depending on the brand’s needs), with the option of studying one or more KPIs, our data scientists can adapt to the real needs of brands. The speed of our teams is an asset when it comes to understanding and explaining your results. Allow around 1 month from receipt of your data for an Admo.tv MMM study.
To go further, you can watch the interview of Emilien Foiret, co-founder of Cabaia, on the benefits of Media Mix Modeling :
If you are interested in such a study, don’t hesitate to contact us.
