For many marketers, marketing mixed modeling (MMM) has provided necessary insight into marketing effectiveness, especially as traditional marketing channels co-mingle with disruptive platforms like social media networks. MMM promises to illuminate marketing performance metrics and analyze various markets and channels so marketers can allocate their resources accordingly.Forrester Senior Analyst Tina Moffett noted the sheer potential of MMM to influence marketing decision-making and guide organizations to optimize their budgets by making more strategic investments. When executed correctly, MMM can facilitate stronger customer engagement and reduce wasted effort on poorly planned outreach strategies.
Is MMM all it's cracked up to be?
"MMM can facilitate stronger customer engagement."
Some industry observers have identified potential holes in MMM-based strategies, however, arguing these flaws can drive marketers in the wrong direction. Forbes contributors David Hoo and Michael von Gonten claimed that MMM in its current state has too narrow a focus, failing to take into account numerous variables and factors that could provide more depth and nuance to its results. Moreover, they argued that MMM could lead teams astray by focusing on the wrong goals.
"[Mixed models] are fundamentally flawed in being biased to favor corrosive price promotion over brand-building advertising and to favor advertising cost efficiency over sales-growth effectiveness," they wrote.
None of that is to say MMM is a lost cause—far from it. This approach to marketing analytics still performs well, but it takes strategy to get the best results possible.
Facebook, Google drive MMM forward
Some of the biggest names in tech have reaffirmed their commitment to marketing performance metrics and mix modeling in the past year. Most notably, both Facebook and Google announced plans to improve the accuracy of available data, helping marketers to gain better insight into their channels and understand what strategies will work best.
First, in January 2017, Facebook announced an expanded partnership with third-party companies Nielsen, comScore and DoubleVerify to help ensure the social network's ad delivery data was completely accurate. As TechCrunch noted, Facebook has previously been under fire for providing faulty data due to metrics flaws.
Going one step further, Facebook also launched an online portal for organizations to view marketing performance metrics and compare social media figures with those captured on other platforms.
Google soon followed suit, creating its own MMM partnership program in April 2017. Marketing Land reported that the tech giant is also working with Nielsen in this new endeavor, along with Neustar MarketShare and Marketing Management Analytics. Google's goal is to give advertisers a better sense of the return on investment they receive from their digital marketing strategies.
Having two of the biggest names in tech throw their weight behind MMM should come as good news for marketers everywhere. Despite previous flaws or claims of perceived bias, mixed models can provide a great deal of value to marketers who need to be absolutely certain that their next campaign is a success. As companies like Facebook and Google work to iron out the wrinkles, MMM continues to be a crucial marketing tool. If you haven't already explored mixed modeling strategies and their applications, now is the time to get started.The future looks bright for MMM.
For help getting the most out of MMM and other data modeling strategies, reach out to Clarity marketing analytics experts. Clarity Insights has a track record of success and can guide you to the most useful data to inform your marketing strategies. Contact our team today to learn more.