Econometrics: Consumer mix modelling

This article discusses Consumer Mix Modelling (CMM), a proposed next generation method to Marketing Mix Modelling, which uses the growing amount of single source data to understand marketing effectiveness on the level of individual consumers.

Econometrics: Consumer mix modelling

Simeon Duckworth, Jeremy Pounder and Paul WardMindshare and Kantar Worldpanel

Modelling techniques are advancing and while Consumer Mix Modelling has similarities to Marketing Mix Modelling, it overcomes many of MMM's limitations and can measure marketing RoI at more sophisticated levels.

Marketing Mix Modelling (MMM) has been the gold standard method of measuring advertising RoI for over 30 years. Using aggregated sales data, it can quantify and predict marketing RoI, isolating one driver from another. It is reasonably easy to implement, largely working with existing streams of aggregate data and it can yield significant improvements in...

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