Marketing Mix Modeling
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
This popular marketing quote, attributed to advertising pioneer John Wanamaker, represents a common challenge among marketing professionals. Fortunately, marketing mix modeling is an excellent way of deciphering the impact of multiple marketing elements at once in a real-world environment.
Marketing mix modeling uses advanced statistics to quantify the impact of each marketing element on KPIs. Results can be compared with spending to determine ROI, and future marketing spend can be used with model results to develop sales forecasts. In this white paper, we review critical steps and best practices for assembling an effective marketing mix model.