It will surprise you to hear this from us, but media mix modeling (MMM) is not the right solution for every brand – especially those in the early stages of growth.
We typically identify three key indicators that suggest a brand should hold off on MMM:
- Limited channel mix: if your ad spend is concentrated on Meta and Google, then in-platform reporting, Google Analytics, and last-touch attribution are probably enough.
- Low ad spend: if you have a small ad budget, the potential gains from fine-tuning your media allocation are minimal compared to the effort required to implement an MMM.
- Organizational readiness: an MMM is only as valuable as the action it inspires. If your marketing team isn’t ready to pivot strategies or reallocate budgets based on new insights, it won’t work.
It’s okay to wait. But if MMM isn’t the answer yet, where should you focus instead?
What Should Early-Stage Brands Focus On?
Here are 3 bigger swings that can get you to the next level before you try MMM:
1 – Focus on creative testing.
Creative is one of the biggest levers you have at this stage. You should be thinking about building a creative engine that allows you to generate lots of different creatives to identify what works well and what’s not.
Also, what works on Meta won’t necessarily work on TikTok or YouTube. Each platform has its own dynamics, creative needs, and audience behaviors so you need to be intentional to make each channel work.
2 – Place bets on new channels
You don’t need an MMM if you’re only spending on Meta. Before you step into more complex measurement methods, you will probably get more value by testing new channels and diversifying your channel mix.
3 – Dial in structural questions
At this stage, product and pricing matter just as much—if not more—than where your ad dollars are going. Is your product as good as it can be? And your packaging? Have you tested your offer? Upsells? Can your supply chain be more efficient so you can pass on savings to your customers?
These structural changes can drive more meaningful growth than micro-optimizations across your budget.
Preparing your organization for MMM
Even if MMM isn’t the right method for your brand today, you can start building a strong foundation and laying the groundwork for when it is. Some things we’ve found to help:
- Step 1: The first thing you want to establish is that the main thing the marketing team should care about is incrementality. Help your decision-makers understand the limitations of current metrics like last-touch attribution and establish that the main thing the marketing team should care about is incrementality.
- Step 2: Talk about how different measurement methods may or may not capture true incrementality. A good way to introduce this is through showing examples of brand search not being incremental – that’s often a good place to start.
- Step 3: Layer the idea of introducing new measurement methods. Start running geo-lift or holdout experiments to build trust in data-driven methods. Build a culture of experimentation and testing.
