MMM is hard – we totally get that, but there are common mistakes made by consultants in the MMM space that need addressing. Here’s 10 of them: 1 – Focusing on the in-sample R-squared metric for MMM models. The standard definition of R-squared is “the amount of variation in the dependent variable explained by the …
Most small e-commerce brands probably don’t need anything more complicated than digital tracking tools for measuring marketing performance. But when the channel mix gets more complex and their marketing grows, digital tracking is simply not enough. After $100k+ / month in paid media budget, it’s a good time to start thinking about running some experiments …
From Digital Tracking To MMM: How Brands Scale Through Marketing Experimentation Read More »
When we talk to consumer brands about MMM, the concerns about its capabilities are sometimes slightly outdated. MMM has historical roots that trace back to the ‘Golden Era’ of the 1960s when big CPG companies pioneered the use of models to evaluate the impact of their ad campaigns. This methodology worked really well as it …
With digital tracking breaking, consumer brands that relied on multi-touch attribution are now looking for alternatives to measure marketing effectiveness. The two methods that comply with privacy regulations and can help get closer to true incrementality are marketing mix modeling (MMM) and conversion lift studies (CSL). Quick context on both: Marketing mix modeling is a …
Recast’s MMM uses Bayesian statistics, but why doesn’t everyone else? We asked this to Recast’s co-founder Michael Kaminsky, and the rest of this article covers what he answered: “When I started my career as an econometrician, I was pretty comfortable with the frequentist methods that people who did a technical degree saw in their statistics …
Marketing Mix Modeling’s main goal is to find the incremental return of every marketing investment – how many sales did each channel drive that we wouldn’t have gotten otherwise? If you can find true incrementality, you can use it to optimize your budgets, get the right channel mix, and get rid of wasted spend. The …
3 Methods To Validate Your Marketing Mix Modeling for True Incrementality Read More »
The central modeling challenge for an MMM is the following: given any set of marketing inputs (budget decisions, promotion dates, new product launches, etc.) to be able to accurately predict what our customer’s performance will be. But, how do we judge our model’s ability to meet this challenge? How do we know if it’s doing …
People often ask us about the differences between Recast’s next-generation MMM platform and Google’s open source MMM tool, Lightweight MMM. In this blog post we do a compare-and-contrast between these tools – we’re obviously biased but will do our best to lay out the pros and cons of each tool as we see them. There …
Quite often we encounter people who have been working with legacy MMM vendors for 15+ years who are shocked when we tell them that Recast is designed to refresh the MMM model every week. While some people see the obvious value in always having the most up-to-date data to work with, others want to know …
There are three main ways that consumer brands measure marketing effectiveness: digital tracking (MTA), marketing mix modeling (MMM), and testing/conversion lift studies (CLS). For the last few years, we’ve lived in a world where most consumer brands didn’t have to think too much about this – they got away with using multi-touch attribution, and it …
Top consumer brands don’t pick one measurement method: they triangulate. Read More »
