By Dimple Dinesh, Marketing Science Partner for MENA at Facebook
Being a part of the digital world for the past nine years, I have witnessed our digital ecosystems constantly evolving. At present, data protection laws and anti-tracking policies are the epicenters of the digital universe. However, the industry has been able to pivot and find innovative ways to combat such situations. One solution to manage the current state would be moving away from consumer-level tracking to aggregated measurement studies. One such measurement solution is the marketing mix modeling (MMM); it is a time-tested statistical analysis thriving on historical sales data, marketing and non-marketing activities, and other variables that can impact an advertiser's business performance. It enables marketers to conduct future planning scenarios and better allocate resources between different channels and marketing tactics.
Advertisers commission MMM via third-party measurement partners, or the models can also be developed in-house if the advertiser has the right skills and tools incorporated within. It is essential for every practitioner beginning the MMM journey to ask themselves these five questions:
MMMs are here to stay. Advertisers should invest in modernizing their MMM models, making them quicker and automated to understand the overall business performance from a bird's-eye view and dive deeper to derive actionable insights. The CMO needs to understand the potential of MMM and demand more. Practitioners need to work with other stakeholders and answer the right questions.