Many marketers have been turning to experiments to help them get a true read on incrementality for their marketing channels. However, it’s important to be aware that there’s a hierarchy of the evidence you get from different types of experiments. Classifying Experiments: The Three Tiers We think about three different …
Not All Experiments Are Created Equally: Navigating the hierarchy of evidence Read More
People often ask us about the differences between Recast’s next-generation MMM platform and Facebook’s open source MMM tool, Robyn. 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 …
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 …
How D2C Brands Can Deal with Multicollinearity in their Marketing Mix Modeling Read More
When we talk to people who are new to MMM and tell them there’s no pixel and we don’t track people at all, we basically see their minds explode. The idea of trying to track people as well as possible has become so established that it can be hard to …
Understanding the Enigma of Marketing Mix Modeling (MMM) without Tracking Read More
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 …
How to fix heteroskedasticity in your Marketing Mix Model Read More
Brands have been using models to understand the effectiveness of their marketing activities since the ‘Golden Era’ of advertising in the 1960s. However, as our history of Econometrics details, the dawn of the internet era and digital marketing in the early 2000s moved Marketing Mix Modeling (MMM) out of the …
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 …
Diminishing Returns: Accounting for Channel Saturation Read More
Many people want to know what the long-term effects of their marketing are. The theory is that advertising today may boost brand awareness which might have long-term positive impacts for the business. Often, they want to know how Recast thinks about these long-term impacts. Unfortunately, we believe that it is …
Why “Brand Effects” are so difficult to measure in MMM Read More
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 …
Disclaimer: This blog post was written by an external contributor about techniques for validating marketing mix models using cross-validation. The approach laid out in this document is not reflective of how Recast approaches model validation. The actual model specification can be found in the technical model specification. You’ve spent countless …
The right way to cross-validate your Marketing Mix Model Read More
