Improving efficiency in Marketing Mix Models: Abstract
The article describes three topics connected with Facebook advertising and the measurement of its efficiency in Marketing Mix Models (MMM). The first part outlines the benefits connected with using the MMM Feed – Facebook’s UI aimed at MMM professionals. Data reliability, better process planning and wide data range help analysts create better models. They also improve their ability to address the Clients’ key business challenges. The second part shows how Facebook’s share in media mix can be optimized. In many cases, there is an opportunity to increase Facebook’s share in all categories analysed. Finally, the third part deals with improving the efficiency of Facebook advertising itself. In this section, a set of rules is evaluated to understand how following them contributes to higher impact of media. The rules concern, among others, campaign reach, intensity and frequency as well as creative evaluation.
Improving efficiency in Marketing Mix Models: Introduction
In the world of business, all investments call for accountability and the investment in marketing – building the brand’s physical and mental
availability – is no exception here. Many market research approaches aimed to address the need for marketing accountability, however, usually they
had their shortcomings: they either focused on a single factor (market tests), measured intermediate statistics or were declarative (survey research).
The introduction of Marketing Mix Modeling was a breakthrough in many ways. For the first time in the history of marketing, there was the possibility to measure the result of all activities. Measuring the effectiveness (impact) and efficiency (ROI) provided marketers with invaluable tools for decision making as well as the justification for the investments they were making.
The rise of digital advertising led to the development of several more measurement approaches – from digital testing to attribution modeling. These approaches led to many in-depth insights and helped increase marketing spending efficiency. With their development and refinement, MMM seemed to go ‘out of fashion’.
