Marketing Mix Modeling (MMM)

Also known as Media Mix Modeling, MMM delivers a macro-level view of offline marketing efforts, leveraging regression analysis to determine the relationship between marketing mixes and their overall impact on sales performance. This top-down approach collects aggregate historical data from internal and external sources to analyze the performance of offline sources, such as TV, radio and print. The analysis includes internal factors—such as promotions and other marketing, pricing and sales data—and external factors such as competitors, seasonality, weather and news events. Many marketers still use MMMs for top-level media planning and budgeting, but overall, the methodology does not capture the full omni-channel picture.