Strong businesses have always prioritized advertising and marketing. These cornerstones of business success are vital for enhancing a brand, pushing promotions and differentiating a business from its competition. Some of the channels for marketing and advertising have remained constant: direct mail, billboards, radio and television advertising are still important means for building a successful business.
Yet the digital revolution has provided exciting new possibilities. Email, digital banners and social media are enabling businesses to access, expand and refine their audiences like never before. With competition so intense and so many available marketing channels, businesses need to be aware of how best to allocate their resources across different channels. Without knowing it, many organizations hold the key to their own success. Many businesses maintain databases containing huge amounts of data. Yet many have failed to convert this data into actionable insights.
MMO offers a two-tiered approach to marketing. The first stage involves the building of a statistical model called Marketing Mix Modeling (MMM). The second stage involves the analysis of MMM results through an optimization engine, which ensures the best possible allocation of resources. Through MMO, organizations get a comprehensive view of their marketing activities and their impact on profits.
This empowers marketers to identify potential new areas of investment or isolate areas of spending that can be cut without adverse effect. For example, MMO could help a company make an informed decision to reduce circular advertisements to once a month, rather than once a week, and reallocate that budget to a digital channel. In this scenario, the company would maintain the same marketing budget, but increase revenues.
With the rapidly evolving digital media spectrum, the traditional methods used to analyze the impact of marketing are no longer the best. MMM has become a key tool for making strategic budgetary decisions; its accuracy and adaptability have made MMM an essential advertising and marketing tool. The absence of detail, and a failure to account for the latest developments and trends, mean that conservative approaches to MMM produce lopsided results that fail to give businesses a true picture of the impact of media. This is especially true of digital media.
As part of our Marketing Mix Modelling (MMM) Partnership with Facebook, Accenture Applied Intelligence studied the evolving MMM methodologies and explored how the use of granular data can improve the accuracy of models. Our resulting whitepaper details the model and its implications to data-driven marketing.