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Marketers often struggle to demonstrate how their marketing activities drive business outcomes. Despite significant technological and modelling advancements, marketing measurement has become increasingly restricted due to privacy regulations and limitations on user tracking on the web. As data inputs evolve and less user-level data becomes available, the industry is turning back to MMM. However, this shift often sacrifices the granularity provided by MTA.
Objective Platform has overcome this lack of granularity by taking MMM to the next level. We developed Next-Gen Marketing Mix Modelling software that incorporates practices from MTA, measurements at both channel and campaign levels and business knowledge. We call this the Holistic Marketing Model (HMM). While it is not a direct substitute for MTA, it still retains a significant level of granularity, which is increasingly at risk with the rise of cookie-less web restrictions.
Our holistic approach improves on traditional MMM in four major ways. This article explains the next-generation Marketing Mix Modelling step by step. Keep reading to discover why these steps are essential for your performance marketing.
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Traditional MMM measures only media factors. However, in HMM, the media effect is measured based on a combination of media and non-media factors. Modern performance marketing requires measurements that account for both media and non-media dynamics influencing your KPIs. There is strong evidence that omitting key variables can lead to significantly inaccurate media estimates. HMM addresses this by avoiding variable exclusion, shifting from simple media modelling to a holistic source of truth that incorporates all relevant factors of influence. This holistic approach provides a deeper understanding of your actual business dynamics. Once these are clarified, you can move towards a more informed strategy and action plan.
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Typically, MMM is used to attribute value at the channel level, sometimes splitting variables to provide more detail. However, when these models are employed to address more complex business questions, there is a heightened risk of overfitting the model by introducing too many variables. In other words, solving one problem may create another. Objective Platform resolves this issue by incorporating a media hierarchy method into its holistic marketing model. In essence, this technique trains the model to understand the relationship between campaigns, channels, and communication goals. This approach makes your model progressively smarter and supports more sophisticated decision-making.
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Organisations often face challenges with data acquisition and may end up with a poor dataset. HMM, grounded in Bayesian modelling, addresses this by blending past business knowledge and experiment outcomes to compensate for limited data availability. For each variable, prior distributions are defined and configured to guide the model on expected outcomes. Simply put, by incorporating your business knowledge and historical performance into our modelling, we create a reliable forecast for your future marketing activities. Evidence shows that setting priors effectively blends past performance insights with realistic business outcomes. In this way, our holistic model is tailored to your business and adapts over time. As a result, you can predict the performance of your marketing activities even with a limited dataset.
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Modern performance marketing demands automation and standardisation, particularly in Marketing Mix Modelling. HMM introduces an innovative approach where results are delivered to your organisation more frequently and in a standardised format, enabling quicker access and real-time decision-making when necessary. By automating data collection, HMM provides faster results presented via dashboards. This approach simplifies access and saves time on repetitive tasks compared to traditional MMM. Consequently, you have more time to focus on decision-making and taking action.
Next-generation methods are essential in today’s privacy-first world as the market increasingly shifts towards Next-Gen MMM. By adopting HMM, developed by Objective Platform, you can align your marketing measurement with a more sustainable future. Moving beyond traditional MMM, you gain the granularity and detailed insights offered by our holistic model. HMM surpasses traditional approaches by integrating elements of MTA and leveraging past business knowledge to deliver a solution tailored to your business objectives. Transition to HMM to:
Curious to learn more? Explore our Next-Gen Marketing Mix Modelling case studies.
