Marketers head back to the future with MMM
By M4G Bureau - September 26, 2023
“It's tempting to believe we reached a conclusion solo, but more often, it’s a multiple of influences that brings the final realisation,” Gary Danks, GM, AIM by Kochava
Is Marketing Mix Modelling (MMM), designed in the 1960s, finally ready to drive marketing in 2023?
MMM tracks the whole user journey to understand the myriad of influences towards a consumer’s final decision. Touch Attribution, marketers’ consistent favourite, typically measures the final touchpoint.
“It’s common knowledge that the final touch point, which is, by design often Google or Apple, gets way more credit than it deserves,” shares Gary Danks, GM, AIM by Kochava.
“Our decisions aren’t usually swayed by a single moment or message. We're impressionable beings, often unaware of the multiple nudges guiding us. It's tempting to believe we reached a conclusion solo, but more often, it’s a multiple of influences that brings the final realisation.”
So why has Touch Attribution been an industry standard of marketing insights?
“Touch attribution's greatest strength is its simplicity, everyone understands it. MMM has always provided valuable insights, but its technology wasn’t quick enough to work in reality. It was slow, used a lot of resources and failed to provide the insights modern marketing teams rely upon.”
“But now technology has evolved, and the next generation of MMM tools will change the way marketers measure their return on investment across all media platforms. MMM analyses all the media sources an organisation uses and understands the specific influences on the final sale. It doesn’t give credit to just one section, it divides it.”
Danks concluded: “MMM now consumes data in real-time and updates models and algorithms on a 24-hour basis, guiding marketers on how to adjust their ad spend on different platforms based on real-time intelligence.”