Regardless of your business or budget size, you need to know the idea of incrementally.
If you are running large campaigns across multiple channels, such as Google, Bing, Facebook, Instagram, Pinterest, etc. often use marketing mix modeling (MMM). When done right, it’s suitable for evaluating media performance and optimizing budgets across media types for long-term budgeting decisions.
We are at Polygons Media have our issues with MMM. First, it typically understands each channel in a storage tower and, later, effectively identifies channel-silo incrementality. Second, as practiced in many companies, MMM incorporates human bias into the model. These models also require a huge amount of spend to get a decent signal and take a long time to produce.
This is the approach we prefer.
Use multiple machine learning–based algorithms to first understand the underlying relationships inside the data, removing human bias.
Construct an influence graph across the entire portfolio, removing silo analysis.
Understand conditional dependencies across all random variables to identify coefficients and do so over smaller datasets.
This MMM method is very scalable, smart and allows you to do both backward-looking analysis (how did we do) and forward-looking predictions.
Regardless of your business or budget size, you need to understand the concept of incrementality. We mean, get it. In addition to your marketing benefits, it just might get you a raise and a promotion. Contact our team at Polygons Media for full reports on your marketing plan.