Twenty-five years ago this month MMA was founded becoming the first company to commercialize marketing mix modeling. Back then the focus was heavily on traditional media – TV, radio, print, price and promotion. The data collected rarely comprised more than a few gigs and the results were used to support media planning and flighting of GRPs within the brand groups in order to improve marketing ROI.
Fast forward a quarter-of-a-century. Online and mobile devices deliver targeted messages to millions of consumers in real-time that are harmonized with traditional media, sales, operations, macro-economic, competitive and other rich data sources. Terabytes of data are quickly shrinking the ‘data white space’ and are processed into high-value, predictive insights which are utilized by executive, marketing, forecasting, finance and logistic teams.
Digital and mobile command, an increasingly larger portion of consumers’ attention as well as advertisers, are challenged to understand how these new marketing venues work within a more fragmented, faster moving and complex marketing world. In order to understand the true impact of marketing the synergies between traditional and emerging media need to be fully understood. Which drive demand and which drive conversion? How can they best work together?
Operations and sales force data also interact with marketing. Understanding the impact of manager experience, personnel tenure, training and servicing, in-store POS systems, the number of check-out lanes, incentive programs and more are all factors that are intertwined with marketing. Rich and robust sets of consumer loyalty data are also being used to pinpoint the most viable consumer segments with targetable, actionable, measureable marketing. Add competitive, macro-economic, weather, seasonal and a variety of channel specific sources and it’s an exciting new world!
Marketing mix modeling has become Business Mix modeling and MMA is at the forefront of driving this innovation! Happy 25th MMA!