Your company’s created a collection of two to three years’ worth of weekly data for every driver of sales, including all marketing channels, but also across areas like price promotions, distribution and product changes. You can now analyse ROI (return on investment) for each media channel to determine the ones you should continue to invest in. Which analysis technique have you used?
- Machine learning
- Media mix model
The correct answer is: Media mix model
Media Mix Models are the best available method for determining the amount of sales driven by each media channel. Most companies use the findings to support their strategic planning and budgeting. Budget decision-makers look at the ROI (return on investment) of each media channel to determine the ones they should continue to invest in.
- Learn more here: Skillshop Measurement Certification
- Seventh Chapter: Assign Value to What’s Being Measured
- Sub-Chapter: Valuing media channels beyond attribution