Marketing Mix Models and Attribution Modeling

posted in: Research | 0








Read as PDF: Marketing Mix Models and Attribution Modeling

Marketing Mix Models   Attribution Modeling
Positives Gives the organization, particularly finance, confidence Agile and dynamic
Evaluates all marketing expenditures on the same basis is highly granular and works at a finer cadence.
Offers holistic view
Broad and comprehensive, but shallow Granular and fast
Lacks granularity and timeliness to guide campaigns Measures the effect of individual creative executions
Reveals the drivers of the brand’s marketplace results Operates continuously in campaign, drives more effective copy and media placement decisions in-flight
Correctly identifes the contribution of each of the underlying causal factors. Now based on sound statistical modeling with parameters fitted to real data.
 Offers the ultimate in granularity and timeliness, promising clear and immediate guidance
 Can drive better ad choice and placement decisions in a continuous improvement process

Negatives Too slow, too macro and too backwards-thinking Blind to the effect of traditional media, the rest of the marketing mix and the brand itself.
Campaign-level creative is rarely considered Grossly overstates of the impact of digital media
Can’t isolate the effect of the right message to the right consumer in the right moment, Previously, credit for sales generation was assigned a priori
Assesses last year’s campaign, not the current campaign Techniques in use range from time-series models to game theoretic approaches; No consensus yet on which techniques are most suitable
Limited ability to drill deeply into the factors that caused the outcome Challenge busting the media siloes between digital and traditional media
Only broad media types are evaluated Other traditional media have proven to be more difficult
Important non-media marketing factors outside the realm
Challenge of identifying all of the digital devices the household uses
A lot of coverage, bias, imputation, and estimation go into the process