Marketing Mix Modelling
Measure effectiveness of media plans
What is Marketing Mix Modelling ?
Marketing Mix Modelling uses statistical analysis to correlate (“attribute”) sales on media investments. Media Mix Modelling (MMM) is a powerful tool when it comes to optimising a media or marketing strategy.
The most common outcome is an understanding of the contribution and ROI of each channel (including offline) on sales.
MMM is a method which attributes sales to media strategies, offline included.
Use MMM to answer questions about your media strategy
Marketing mix modelling is both an evaluation and a planning tool.
Evaluation questions answered
- What media is the most effective? Media has the broadest meaning, we can evaluate the effectiveness of all paid, owned and earned media.
- How many sales are “natural”? (meaning they would happen without any media investment)
- What is the global ROI of paid media investments?
- What is the ROI per channel?
- What is the optimal level of investment? …
Planning & optimisation tool
Once the ROI per channel is done, we are able to make scenarios and choose the optimum in terms of investments.
The only media measurement framework that is fully GDPR-compliant
You may use digital marketing attribution tools, which tracks consumers from impression to conversion. Those techniques are at best biased, at worst illegal. We don’t use any personal data to track media ROI : we just look at business data such as media investments and number of sales.
We have a clear process that includes several stages:
LYKTA, your ideal MMM partner
A perfect understanding of all media metrics is required to analyse and process media data. You don’t want to mix gross digital investments with TV net investments which contain your media agency fee.
We have experience in media portfolio management, both online & offline.
Attribution and ROI measurement is most often driven by media agencies or media partners such as Google. But remuneration of both depends from advertiser’s media investment. There is a clear conflict of interest. How can they advice you not to invest, or decrease investments if required ? How to be sure they don’t receive incentives or surcommissions depending on the media plan ? Our main concern is to guide you in your best interest. Our remuneration is the same, whether you invest or not. Therefore, our transparency is total.