What Is Marketing Mix Modeling?

In the early 1980s, Media-mix Modeling technology appeared. It first helped marketers implement the function of linking advertising campaigns with sales data. Marketers began to use this technology to allocate limited market resources. .

Media Portfolio Modeling

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In the early 1980s, Media-mix Modeling technology appeared. It first helped marketers implement the function of linking advertising campaigns with sales data. Marketers began to use this technology to allocate limited market resources. . Every marketer is eager for this primitive and rudimentary analysis, which lasted for nearly 20 years until the advent of digital marketing in the late 1990s. Digital marketing increases the likelihood of evaluating the causal relationship between advertising and purchases by monitoring every mouse click. Marketers start tracking customers' latest activities on the web, for example, clicking banner ads on web pages and linking purchases to those activities.

Disadvantages: Marketers also combine web activity tracking with several traditional advertising evaluation methods, such as customer surveys, focus groups, and media portfolio modeling. This multi-pronged approach seems foolproof, so many salespeople believe that they have grasped the mystery of advertising affecting buying behavior and driving sales, but in fact, this seemingly insurance analysis is outdated. The main reason is that the traditional analysis method is retrospective. No matter what kind of touch points-posters, online advertising, television, radio, email, and other channels, the traditional analysis method considers them to be irrelevant and play independently effect. To make matters worse, the operations of different marketing teams, advertising agencies and media investors are also different, and the evaluation methods used are very different, but they are competing for the same resources. This type of analysis is called "swim analysis", and it often leads marketers to mistakenly attribute specific sales results to their marketing activities, which also explains why company financial data does not match marketing returns.