With multitouch attribution (MTA) models set to become obsolete, marketers should opt for media mix modelling to effectively measure marketing contribution.
Marketing mix modelling or media mix modelling (MMM) is a statistical analysis of aggregate marketing, sales and business data. This model quantifies the effect of different marketing channels and tactics on financial outcomes over time. Compared to multitouch attribution models (MTA), MMA can include more touchpoints, especially non-addressable digital tactics like TV, radio, out-of-home and others.
The author contends that MMM tends to produce higher marketing contribution measurements than MTA. With MMM, brands can also measure sales calls, press releases and influencer and brand partnerships. But to efficiently implement MMM, brands need to first assemble a full view of their media spend and media performance, including impressions, clicks and views.
Marketers must ensure they have at least two years’ worth of data, combined with first-party CRM data to access quality analysis. Brands can even invest in a vendor that can help them set up MMM-warranted requirements like a central repository of data and computing resources with predictive capabilities.
[3 minute read]