Marketing mix modeling

What is marketing mix modeling?

Marketing mix modeling involves creating a model in which all available data on marketing initiatives is collected and linked to provide insight into the performance of these initiatives. This enables companies to optimize their marketing expenditure and develop a data-driven marketing strategy. Examples include the performance of Google & Bing Ads campaigns, TV commercials, leaflet distribution, social media campaigns, and other marketing activities.

Once sufficient historical data has been collected, the model can be further expanded to look ahead and even make forecasts and predictions for future campaigns. From that point on, organizations can simulate scenarios to answer questions such as: "How much extra revenue will I generate if I advertise more on Instagram?" or "How much extra traffic will a TV commercial generate in a given period?"

To further refine the model, organizations choose to conduct additional market research and collect extra data. This allows them to not only use data on website traffic and sales, but also gain insights into factors such as brand awareness, brand image, and customer satisfaction.

Marketing mix modeling in practice

Currently, marketing mix modeling is mainly used by organizations that have been actively collecting historical data on the performance of various campaigns for some time. Using the dashboards they have built up, they can make precisely the right adjustments to ensure that their marketing budget is used as efficiently as possible.

Would you like to speak with a research specialist, without obligation?

Many companies have already been able to put the benefits of marketing mix modeling into practice. Are you curious about what we can do for your brand? Feel free to contact Client Consultant Stefanie.