What’s your ROI? It’s one of the most common questions in the marketing world. Everyone is performance driven and they want to see measurable results. In this new era of technological growth, we have an ever-increasing palette of tools at our disposal to help us measure our campaigns in a number of ways, in search of ROI gold. To help us better understand these tools and the media landscape that surrounds them, MarketingProfs invited Forrester’s Luca Paderni and ThinkVine’s Damon Ragusa to host a webinar, Marketing Mix Modeling: New Approaches to Maximize Your ROI. I’ve summed up some key takeaways from the webinar below.
What is Marketing Mix Modeling?
Marketing Mix Modeling is defined as the process of using statistical analysis to estimate, optimize and predict the impact of paid, owned and earned multichannel marketing tactics. MMM, as it can be referred to, is helpful for media fragmentation, marketing accountability and consumer data integration. Businesses are looking to MMM because it provides a more innovative approach to evaluating effectiveness of marketing campaigns.
The most glaring progression in MMM is the shift from historical data tracking and evaluations to forward-looking, predictive analytics. Marketers have developed new algorithms over the years to more accurately predict the effectiveness of a given marketing/media spend based on any number of criteria. It’s important to consider the wealth of new data streams that provide marketers with actionable metrics – social media and live campaigns are now integrated into traditional marketing efforts like trade shows and coupons. Additionally, MMM is working to help distinguish between consumer actions influenced by paid marketing messages and non-paid marketing messages (WOM, peer reviews, etc…).
Today, data must be consumed, interpreted and turned back around to help optimize marketing efforts in lightning-fast speeds. There’s no more time to sit around and wait for annual reports. MMM provides real-time data that gives a certain level of flexibility to today’s marketing campaigns that was more difficult to find in years past. All of this leads to quicker decisions and actions.
What Kinds of Marketing Mix Modeling Vendors Exist?
As identified by MarketingProfs, there are three main types of MMM vendors.
- Model-focused: These vendors have been around a long time and are very specialized (Accenture, Polaris Research, Five x Five, Ninah)
- Technology-focused: These vendors leverage cloud computing and cheaper computing (M-Factor, ThinkVine, CCM, MarketShare)
- Data-focused: These vendors specialize in aggregating, managing and interpreting vast data sets from various sources (comScore, Nielsen, Acxiom)
When searching for a MMM vendor, consider looking for traits including mature self-service software, collaborative tools, support for emerging marketing channels and data streams, and aggressive growth with respect to the volume of existing clients. These vendors are meant to help marketers integrate marketing data from multiple consumer touchpoints, analyze data to create forward-looking insights, translate marketing data into ROI relevant to business results and ultimately to justify marketing budgets to CFO and financial teams.
Given the rise of social media as a platform to extend marketing campaigns and reach consumers through dialogues with brands, evaluating Marketing Mix Modeling Vendors becomes ever more critical. Social businesses will need to begin looking across channels because marketing efforts no longer stay on one singular channel. Social businesses also need to be flexible and capable of shifting strategies in real-time for marketing optimization. This is only possible with a strong real-time measurement system in place – something that MMM can help with.
As the marketing industry continues to evolve, where do you see Marketing Mix Modeling fitting into the grand scheme of things? How will these vendors impact social business in your mind?