Marketing mix modeling

To create an accurate model, you need at least two years of weekly data relating to the factors you want to include in the model, such as your marketing expenditure, prices, and turnover. This could be expenditure on various channels, such as social media, online advertising, and more. External factors can also be included, such as competitor data and general market dynamics. The result is a universally applicable model that helps you make smart, data-driven decisions about your marketing strategy.

What are the benefits of marketing mix modeling?

Marketing mix modeling offers a wealth of insights into the effectiveness of your marketing activities. It shows how different channels contribute to your revenue or profit and which investments have the most impact. For every dollar you invest in marketing, marketing mix modeling shows you how to best use it to create maximum value. In addition, you can use the model to simulate different scenarios. For example: What will happen to my revenue if I increase my social media budget? Or how much profit can I achieve by reducing my television advertising budget?

Moreover, marketing mix modeling not only helps you determine where to best allocate your budget, but also when. The model takes into account seasonal trends and other time-related factors. For example, it can show that a TV commercial generates more ROI in August than in March.

The results can be presented in a clear dashboard or report, tailored to your needs. This makes it easy to see the return on investment (ROI) of different channels and strategies. These insights help you to optimize your marketing spend in a targeted and efficient manner.

Why choose marketing mix modeling?

Marketing mix modeling is the method of choice for organizations that want to get the most out of their marketing budget. It enables you to make confident decisions about where to invest, without having to guess. What's more, it's flexible: the model can take into account changes in the market, competitors, and shifting customer preferences.

Another major advantage is that marketing mix modeling helps you simulate and plan marketing strategies based on realistic data. This reduces the risk of wasting your marketing budget and increases the effectiveness of your campaigns. Whether you invest in traditional channels, digital marketing, or a combination of both, marketing mix modeling provides the insights you need to grow strategically.

With marketing mix modeling, you turn data into your most valuable ally. For every dollar you invest, marketing mix modeling tells you exactly where it will be most effective. This allows you to build a successful, data-driven marketing strategy that makes a difference.