Leverage marketing mix modelling to show the leadership how marketing tactics yield results.
CMOs looking to prove to CFOs how their advertising and marketing strategies have impacted sales should leverage marketing mix modelling. Marketing mix modelling allows CMOs to statistically analyse sales over a period of time to discover what exactly generated those sales.
It can help marketers contextualise marketing tactics that are working and optimise their approach on initiatives that yield maximum returns. Further, marketing mix modelling is a predictive tool that can help inform marketing decisions ahead of time. While events like COVID-19 impact consumer behaviour, CMOs can use years of data from the model, to identify and isolate marketing tactics that had an impact.
However, marketers need to take into account data from all sales variations, and input the changes in marketing and advertising, to ensure the model predicts the results accurately. Also, since marketing mix modelling does not operate at the consumer level, the loss of personalised data from third-party cookies shouldn’t be a cause for concern. Michael Salemme, Zenith, states, “We’re talking about really big trends, and we’re not building these models at the consumer level.”
[5 minute read]