Marketing Mix Modeling

Marketing Mix Modelling for Scenario Planning

Scenario planning or demand forecasting decides everything an enterprise does.  Right from quantities of raw material sourced to the inventory that needs to be stocked, through to shipping, packaging, hiring, and all the way down to purchasing office supplies  — everything is dependent on accurate forecasting and scenario planning. Forecasting …

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Diminishing Returns: Accounting for Channel Saturation

You cannot double spend and expect sales to double. Advertising on auction-based platforms like Meta or Google exhibits diminishing returns, meaning as you increase spend, efficiency suffers. When you continue to increase your advertising spend you see increased customer acquisition cost (CAC) and lower return on investment (ROI). Essentially, there’s …

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How to fix heteroskedasticity in your Marketing Mix Model

Disclaimer: This blog post was written by an external contributor about detecting and addressing heteroskedasticity in marketing mix models. The approach laid out in this document is not reflective of how Recast approaches heteroskedasticity and model validation. The actual model specification can be found in the technical model specification. Heteroskedasticity …

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How D2C Brands Can Deal with Multicollinearity in their Marketing Mix Modeling

Multicollinearity is one of the hardest problems in marketing analytics. If you took a statistics course in undergrad, you might have covered it; it describes a phenomenon where two or more variables in a model are correlated. Let’s bring it to marketing to make it more tangible. Imagine we’re trying …

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Top consumer brands don’t pick one measurement method: they triangulate.

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 …

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3 Methods To Validate Your Marketing Mix Modeling for True Incrementality

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 …

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From Digital Tracking To MMM: How Brands Scale Through Marketing Experimentation

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 …

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