CHAPTER 8Marketing Mix Modeling and Attribution
8.1 INTRODUCTION
In the complex and multichannel world of modern marketing, understanding the impact of various marketing activities and accurately attributing outcomes to them is a challenging but essential task. This chapter will delve into the concepts of marketing mix modeling (MMM) and attribution, two powerful methodologies that help marketers measure the effectiveness of their efforts and allocate resources more efficiently.
MMM is a statistical technique that uses historical data to quantify the impact of various marketing components on sales or other key performance indicators (KPIs) (Ataman et al., 2010). However, attribution models help in assigning the proper credit to different marketing touchpoints in a customer's journey toward a conversion (Lemon & Verhoef, 2016).
Understanding and applying these methodologies can provide a competitive edge by informing strategic decisions, optimizing marketing spend, and, ultimately, maximizing the return on marketing investment (ROMI) (Lenskold, 2003).
As digital marketing continues to evolve and become more data-driven, the application of these techniques has become more sophisticated. This chapter aims to provide an in-depth understanding of these methodologies, their applications, and their significance in the current marketing landscape.
8.2 MARKETING MIX MODELING CONCEPTS
After laying down the foundational understanding of MMM and attribution, let's delve deeper into ...
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