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Future-Proofing Measurement. Media Mix Model Myth Busting

Jul 17 2024 | Ad Strategy, Data Analytics Tech, Insights

Recent privacy policy changes are already drastically reshaping the marketing landscape. With more changes on the horizon, there is no time like the present to prepare for the cookieless future.

For marketers looking to embrace the new terrain and continue developing and measuring ROAS in a privacy-centric way, Media Mix Modeling (MMM) is an essential piece of the puzzle.

This summer, the Kochava, and M&C Saatchi Performance Data & Analytics teams hosted a fireside chat to help advertisers seize the opportunity ahead and address the key questions, concerns, and misconceptions about going all-in on MMM.

Read on for the highlights of the conversation between Dane Buchanan, Chief Data & Analytics Officer at M&C Saatchi Performance, and Gary Danks, General Manager AIM at Kochava. Then, check out the full session recording available here.

What is Media Mix Modeling?

Media Mix Modeling (also known as Marketing Mix Modeling, Econometrics, or Regression Analysis) is an advanced statistical technique that unpicks the incremental impact of media investments on tangible business outcomes.

Unlike traditional attribution models that measure a specific touchpoint before a conversion, MMM offers a more holistic view by considering offline and online media and external factors like seasonality and economic conditions.

MMM also operates without individual user data, so it’s completely future-proof against impending privacy policy changes.

The benefits of Media Mix Models for advertisers

At the highest level, Media Mix Modeling shows advertisers how to get more sales from the same amount of spend. Examples include:

Strategic Insights: MMM helps brands understand media’s true impact on their business. It answers critical questions about which channels perform best and how to optimize investments by channel, geo, timing, and more.

Tactical Optimization: Today’s MMM models can be updated in near real-time. This allows for highly granular control and enables advertisers to optimize weekly budgets against campaign-level data. Brands can also use MMM insights to see the impact of top-of-funnel media on bottom-of-funnel results and coordinate their online and offline media strategies accordingly.

Future-Proofing: Media Mix Modeling is a privacy-first solution that doesn’t rely on user data. This makes it resilient against future privacy regulations and ensures that brands can continue measuring their marketing effectiveness by a single golden standard.

Where does MMM fit into a holistic measurement framework?

The great thing about Media Mix Modeling is that it can run parallel with attribution and incrementality testing. MMM is non-disruptive, and no technical integration is required. Advertisers should think of MMM as enriching what’s already working, not replacing it.

At M&C Saatchi Performance, it’s recommended to utilize MMM as one piece of a three-part Measurement Trifecta consisting of:

Attribution: To help optimize in-channel targeting and allocate investments along various touchpoints of the user journey.

Incrementality Testing: To reveal the true incremental impact of media and corroborate all other measurement approaches.

Media Mix Modeling: To give a comprehensive view of how different media contribute to overall business outcomes.

While every business has bespoke needs, combining these three approaches creates a universal foundation for marketers to understand their campaign impact, refine media plans, and drive growth across their entire media mix.

Download a free ‘Measurement Trifecta’ explainer here

Busting Media Mix Modeling Myths

MMM is highly complex: While MMM involves complex statistical methods, the inputs needed are very straightforward. Using the models and applying their outputs should be just as simple as attribution. Remember that an MMM provider will handle the setup, so picking a great partner is key.

Media Mix Modeling is too time-consuming: Advances in technology mean advertisers can get up and running with MMM in as little as two weeks. Depending on the data, insights can then be pulled at a weekly or even daily cadence.

MMM lacks sufficient granularity. Today, MMM derives highly granular insights and can always be supplemented with other measurement approaches to dig deeper.

Media Mix Modeling isn’t built for performance marketers: MMM is not a new concept, though it has evolved over time. What was once considered a brand marketers’ tool now serves the performance marketing domain extremely well and often unites the entire business.

Five steps to get started:

1.Gather data: It’s important to begin collecting and organizing data for the models as soon as possible. Unless brands collect data conscientiously with specific questions in mind, they may not have as much as they think. Even starting small and expanding over time can yield extremely valuable insights.

2. Communicate with senior leaders: MMM requires a cultural shift within an organization, so stakeholders must be involved as the new measurement standards are set. Remember that MMM and attribution models are two different languages, so adjusting to the new insights can take time. Proactive communication is vital to ensuring alignment.

3. Diversify media channels: Sufficient media variation is necessary to tell a complete story with data. Diversifying channels helps pull in a wide array of the conversion funnel, and media spend data to feed the new models properly.

4. Choose the right partner: Partnering with an expert simplifies the implementation process and ensures quick access to actionable insights. Brands should seek partners with robust tech solutions and in-depth insights into Media Mix Modeling within the digital marketing ecosystem.

5. Begin right away: There is no time like the present. Starting now ensures sufficient time for testing, adjusting KPIs, and educating stakeholders through the transition. Right now is also the only time marketers can compare deterministic signals side-by-side with MMM to understand the new insights through a familiar lens.

Watch the entire session here to learn more about Media Mix Models

Watch our Future Proofing Measurement Video series.

Interested in finding out how we ensure holistic media measurement for clients? Watch a series of videos from the Data & Analytics team explaining various elements of their approach to media measurement.

Contact us today for more insights and to learn how M&C Saatchi Performance helps brands navigate Media Mix Modeling and the cookieless future.