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Sure but what is marketing mix modeling?

It’s a way of using statistical analysis as a tool to look back at sales over a period of time to determine what exactly caused those sales. Essentially, it’s a way of helping marketers and agency execs contextualize what’s working and what’s not. For example, say a marketer who typically spends the majority of their ad dollars on TV reallocated that spending to digital channels and offered a discounted product price.

Sounds like an obvious thing to do. How does it work?

Marketers and agency execs input data to the analysis based on not only the marketing tactics they are using but each activity that a brand may deploy or encounter. So they’re not only accounting for digital, TV, out-of-home, radio, podcast and social media advertising but the price of a product and various promotions that are being run. Of course, that’s not all. That’d be too easy.

But you just brought up the pandemic. Doesn’t that throw a wrench in the whole thing?

In some ways but not really. That’s why marketers use a few years’ worth of data for marketing mix modeling.