Marketing mix modelling finds a moment in the age of retail media

With consumers now using more than 20 channels to interact with brands, it’s vital that marketers have the right measurement solutions to ensure they optimise their marketing plans across online and in-store channels, an area where marketing mix modelling (MMM) has an important role to play. 

Why it matters

A focus on evidence-based planning and privacy-safe measurement solutions is driving a return to marketing mix modelling (MMM) as more data becomes available to connect marketing and retail channel activity. 

A new WARC report, Next wave measurement: Marketing mix modelling in the age of retail media, produced in partnership with Amazon Ads, outlines the role of MMM in a world where retail media impact continues to expand. It also highlights the advances being made in support of greater industry adoption of these advanced analytic solutions. Next-generation MMM solutions are more accessible, faster to use, and able to produce detailed analysis by individual sales channels rather than an aggregated view, helping brands improve their retail partner and retail media strategies.

What MMM can do 

• Identify incremental sales. Understanding incremental sales for specific media and retail channels enables marketers to build an accurate picture of marketing ROI.
• Isolate channel effect. MMM harmonises a wealth of data to perform a like-for-like analysis of all marketing channels.
• Demonstrate online and offline synergies. Advanced MMM techniques allow marketers to understand ‘hybrid’ shopper journeys and the synergies between retail media and other channels.
• Understand branding vs sales activation. New ad formats are emerging within retail media platforms that are capable of driving upper-funnel, as well as lower-funnel objectives.
• Execute durable measurement. MMM is considered a durable measurement solution as the digital and regulatory landscape evolves.

Key quote

“MMM is really helping us look at the next level, and both macro and micro channels in each category. We can pinpoint where things aren’t working and which levers we need to pull to optimise them in campaign, in flight, or in scenario planning” – Moitree Rahman, Associate Director, Data Activation and Measurement Strategy at Colgate-Palmolive.

WARC members can read the report in full here. Non-members can download a copy here.