Marketing Mix Modeling (MMM)

Advanced 📣 Marketing / Advertising

Definition

Statistical analysis determining how different marketing channels contribute to sales, creating convincing spreadsheets that support whatever you already believe.

Example Usage

Our MMM suggests TV drives 40% of sales, perfectly justifying the TV budget that was already locked in.

Origin

Econometric modeling adapted for marketing, 1960s-1970s formalization

Fun Fact

MMM requires 2+ years of historical data and is so complex that the results are impossible to argue with, which is both its strength and weakness.

Source: Marketing Analytics Association standards

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