If your client’s CEO asked their CMO for the revenue contribution and ROI of last year’s total marketing budget, which included both online and offline channels across brand and performance media, the measurement solution the client should use is Marketing Mix Modeling (MMM).
- Multi-Touch Attribution (MTA)
- Performance Planner
- Incrementality experiments
- Marketing Mix Modeling (MMM)
The correct answer is: Marketing Mix Modeling (MMM)
The answer Marketing Mix Modeling (MMM) is correct.
Explanation: Marketing Mix Modeling (MMM) is the ideal solution for this scenario because it can attribute the revenue contribution and ROI across all marketing efforts – both online and offline channels, and both brand and performance media. Unlike other methods that might focus solely on digital or last-click interactions, MMM uses statistical analysis to understand how various marketing inputs, external factors (like seasonality or competition), and even non-marketing elements have historically contributed to overall business outcomes like revenue. This provides a holistic view necessary for a CEO to assess the total marketing budget’s effectiveness.
Reference Link: Marketing Mix Modeling (MMM): What is it and why is it important for advertisers? – Think with Google: https://business.google.com/in/think/
This Think with Google page explains that MMM “is an analytical approach that uses statistical techniques to estimate the impact of various marketing and non-marketing activities on sales or other key performance indicators (KPIs).” It emphasizes its ability to “measure the effectiveness of both online and offline media.”