By applying a more holistic, commercially-focused approach to marketing mix modeling, marketing driven analytic organizations can get a much more accurate read on the ROI of their marketing investments. Applying fact-based marketing mix ROI optimization solutions to marketing investments can drive 40% improvements in your marketing effectiveness.

Marketing ROI is top of mind for senior executives across every industry and global market. As the adoption of marketing mix modeling and marketing ROI measurement has grown, so has the need for increased speed, granularity and holistic business reporting. The practice of marketing mix modeling has now evolved into commercial effectiveness for many companies. Commercial Effectiveness encompasses a much broader and relevant data set and helps establish investment synergies that provide a considerably more accurate attribution of ROIs. This exciting and dynamic evolution has been enabled by advances in data, technology and innovative analytics.  It has broadened the scope of the analysis to include marketing, operations and external factors as well as dramatically improving the speed-to-insight.  As a result the combination of richer insights delivered faster supports better alignment with business planning processes.  In addition, these granular models are able to support tactical marketing optimization in a way that aligns with core business processes. As the models have evolved, cross-functional involvement has expanded and the value delivered through this work in the form of increases in sales, profit and shareholder value has increased dramatically.

MMA is enabling companies to address critical business questions, including:

  • What is the offline and online impact from traditional, digital and social media and sales? What is the ROI for each channel and campaign?
  • What would be the future impact of a change in the marketing strategy and budget?
  • What is the optimal spend and mix of marketing investments
    to achieve financial objectives?
  • How to balance investments in brand building vs. product focused marketing?
  • How to optimize investments to drive sales and profit by customer segment?
  • How does marketing perform in-season vs. out of season? What is the optimal timing and execution?
  • What is the impact of brand equity, consumer sentiment and customer satisfaction on sales?
  • How to optimize the value of a loyalty program?
  • What is the optimal sequence of activities to drive customer behavior (Next Best Action)?
  • How does marketing effectiveness vary by response channel and geography?
  • How to optimize the effectiveness of each marketing channel by sub-channel, campaign, geography, timing, audience/target, duration and publisher to improve ROI?
  • What is the appropriate cross-media attribution (e.g. TV driving Search)? How to take advantage of media synergies? What is the role of paid, earned and owned media?
  • What is the impact of operations factors and external factors (macroeconomic, weather, competition, etc.)?

Delivering value to our clients requires four key ingredients:

  1. Holistic, More Accurate Marketing Mix Models – The marketing mix analysis within the environment of a commercial effectiveness model produces an approach that simultaneously measures the impact of all business drivers including traditional media, digital media, operations factors, consumer attitudes and external factors on offline sales and online sales at the level in which they are executed and by customer segment. Because commercial effectiveness models incorporate potential synergies and attributions on marketing variables from sales, operations, product, external and other important areas, the models do not over or under attribute success to variables.
  1. Integration of Digital Attribution and Customer Data
    By integrating the two holistic sets of capabilities marketers gain an accurate, actionable view of “Full Attribution” enabling both top-down and bottom-up marketing optimization to drive gains in marketing performance (incremental revenue and profit driven by marketing) in the range of 20-30%. When reviewing a marketing ROI metric at the total marketing channel level (e.g. total online video), it is important to consider that such a metric is the aggregate of many individual and granular ROIs at a very tactical level that vary by campaign/creative, timing, placement/publisher, duration, market and audience. Optimizing at this tactical level represents a meaningful opportunity to improve the ROI of each channel, while driving measurable increases in the sales and profit driven in each marketing channel. Doing this requires a purposeful integration between the marketing mix models, data from a DMP and/or On-boarder, digital attribution platform and a method for driving activation through media planners either through a manual process or a direct link into planning tools or the current DSP.
  1. Speed to Insight
    Embedding holistic commercial effectiveness/marketing mix analytic capabilities into ongoing business planning processes in order to produce high-value results requires the insights be activated and leveraged quickly. Historically it’s taken months to produce and deliver the statistical models necessary to activate the results.  Through dramatic enhancements in data automation, technology and modeling platforms the capability to rapidly produce thousands of  client-specific predictive models to test combinations of business variables at a very granular level, companies have been able to reduce speed-to-insight timing to coincide with key business planning and measurement initiatives.
  1. Consulting and Change Management
    Changing and transforming age old processes can be challenging.  However when effective change management and assimilation steps are implemented the path to unlocking multi-million dollar gains can be opened.  Marketers and CFOs are looking for a unified approach to tap into that value that aligns to their decision-making ability and business planning cycles – usually quarterly, often monthly, and sometimes even weekly. This needs to come from integrating modeling and attribution platforms with experienced transformation-focused consulting that helps an organization leverage what’s working best while guiding them to assimilate new learnings and advantages to win going forward. MMA works closely and collaboratively to help clients combine the best of what’s worked and what they need to have to win going forward to shape competitively advantaged business strategies.

A Tale of Two Companies

Applying analysis from previous case studies, two hypothetical competitive $1B companies found themselves battling for revenue and share growth in a low growth economy where 50% of any growth came from the other. Both had $75M marketing budgets. Both companies had pools of efficient/productive investments which averaged returns of $1.75 in revenue for $1 invested. However, 35% of their budget returned less than $1 in revenue and had little to no impact on long term brand equity.

Company A hired MMA to conduct marketing performance models to identify what worked and what didn’t and what investment would produce higher revenue and profits in the future. Company B stuck with their “gut intuition” metrics and stayed the course.

Company A identified specific areas where marketing was over-allocated and inefficient as well as areas for future ROI improvement. They opted to re-allocate budget from the “worst” performing 25% to the “best” 25% of the opportunity areas. Fourteen months later the marketing productivity of Company A and Company B was re-evaluated…

Marketing Improvements Drive Marketplace Advantages

Marketing Mix Modeling Graphic


MMA provides clients continuous, actionable insights and a value proposition into how their marketing performance can be optimized for the future based upon a rich historical perspective of marketing and trade promotion performance, pricing actions, economic indicators, customer attitudinal insights, competitive landscapes and other business conditions.


Collaborative sessions are conducted with key business stakeholders to identify important issues they are seeking to solve by applying marketing mix modeling results. Issues are identified and a roadmap to value is created that aligns with organizational objectives.


MMA’s clients have the ability to conduct real-time “what if scenario” simulations as well as optimization routines across a variety of potential and planned business situations.


This provides pinpoint reads on exactly why and how much each marketing, media, promotion, distribution, operational, competitive, economic and other variables had on either positively or negatively impacting the business.


Custom client models incorporate a rich set of client specific data enabling an expedited understanding of what will happen, when, where and why based on a wide variety of optimized and simulated marketing and media programs.


A rich set of data is collected at a granular level by MMA’s professional data management personnel. The data is collected, cleansed and harmonized in a powerful database that acts not only as a modeling and analytic platform for the ROI analysis but also as a database for developing rich and insightful business reporting.


Count on partner-level insights from experienced consultants who work collaboratively with clients to assimilate the predictive insights into client ongoing business processes support value creation.