"Marketing mix modeling (MMM) is a way to optimize advertising mix (where money is spent on advertising) and promotional tactics with respect to sales revenue or profit. It is an analytical approach that uses historic information, such as syndicated point-of-sale data and companies’ internal data, to quantify the sales impact of various marketing activities."As I dug deeper into MMM I saw both the value and the complexity involved. However, my liberal arts degree, in no way prepared me for it.
The ideas and concepts around MMM have been used in the CPG (consumer packaged goods) industry for decades, but little outside of that industry. The reason - it required massive volumes of data and greater computing power than was available at an affordable price. Today, however, with digital transformation, increasing numbers of digital customer interactions, the abundance of data, algorithms, analytics dashboards, artificial intelligence and everything-as-a-service, MMM is rapidly expanding.
