Attribution and Marketing Mix Model

Question 1

Marketing Mix Model (MMM)

Answer 1

A marketing mix model (MMM) is an analysis that shows the impact of marketing on a brands sales. Very useful for companies that invest a significant amount of their marketing budget in off-line media channels or companies that sell predominantly through offline sales channels like brick-and-mortar stores.

Question 2

Experiments

Answer 2

A powerful tool that can determine how many conversions each media type drove as a result of marketing message - typically called incrementality or lift - and how many would have occured anyway, which can be used to determine channel-level budgets.

Question 3

What are the two types of experiments?

Answer 3

A/B experiments and Incrementality experiments

Question 4

A/B experiments

Answer 4

Two different ad versions are released to audiences to determine which one performs better.

Question 5

Incrementality experiments

Answer 5

These experiments compare the behavior of control and treatment groups to determine the impact of a specific variable, telling us how much that variable influenced the consumers decision to convert.

Question 6

Cross Channel Attribution

Answer 6

Cross channel/multi-touch attribution (MTA) includes all marketing touch points that cause a conversion and is meant to give a full picture of the customers path to conversion.

Question 7

How does cross channel/multi-touch attribution work?

Answer 7

Sophisticated algorithms and machine learning evaluate all the different paths to determine the most influential touch point. Factors such as the number of interactions, the order of exposure, and the creative assets used in each conversion path may be incorporated into the credit.