Original LinkedIn post
💡 State of the art Marketing Mix Modeling solutions provide campaign-level ROI tracking
Most MMM solutions today still operate in the old paradigm, where the focus is on comparing ad platforms or media against each other. This has lots of value for marketing professionals because it enables improving marketing ROI by re-allocating budget more effectively across different platforms and media.
But modern MMM solutions go much deeper: they provide campaign-level ROI tracking and optimization.
This new level of granularity in MMM insights means that MMM is also relevant for performance marketing teams and other marketing professionals who are optimizing marketing on a more tactical level.
Some claim that this level of granularity is not needed: "You can use ad platform's ROAS to compare campaigns". Unfortunately, ad platform -reported campaign-level ROAS metrics are not comparable, even within a single ad platform. This is because the ratio of truly incremental conversions out of total ad platform -attributed conversions can have huge differences, for example between prospecting and retargeting campaigns. Example: if ad platform reports the same ROAS of 10 for two campaigns, it could be that the real ROI is 3 for one of them and 6 for the other one.
Some claim that MMMs can't operate on this level of granularity: "There's too much noise in the data." This is true for MMM solutions of the old paradigm. The new breed of MMM solutions combine the traditional MMM approach with other technologies and data, for example incrementality tests and attribution data.