MODULE · MMM — MARKETING MIX MODELING

Brand investment, translated into sales.

The model measures not just what each channel sells today, but how much it moves your brand and what that brand is worth in sales. It takes your digital and offline media spend, your brand metric and your sales, and tells you how much to invest in each channel.

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MEDIA → BRAND → BUSINESS · WITH ITS UNCERTAINTY RANGE

Video

Marketing Mix Modeling: which channel really sells

The model shows which channel moves sales and how much it pays to invest in each one. (Video in Spanish.)

Why this model

Brand advertising doesn’t sell right away. That’s why almost nobody can measure it.

A traditional Marketing Mix Model answers how much each dollar in each channel sold. That works for performance, but falls short on brand: brand advertising first changes what people think of your company and, months later, that turns into sales. The model measures that whole chain and answers the two questions a traditional model can’t.

QUESTION 1“If I invest this much in brand, how much does my metric rise, and what is that lift worth in sales?”
QUESTION 2“I want to lift my metric by this many points: how much do I need to invest, and in which channels?”
How it’s built

Three linked layers.

LAYER 1

Media

Spend by channel, week by week. Each channel has a role: brand —TV, out-of-home, sponsorships, video— or performance —search, paid social, affiliates—.

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LAYER 2

Brand

The metric you already track —top of mind, first choice, consideration, NPS or branded search— estimated every week, even if the survey is monthly.

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LAYER 3

Business

The outcome you choose: sales, volume, new customers or orders.

Performance channels hit the business directly; brand channels reach the business through the brand. That separation is what lets you put a sales value on every point of your brand metric.

How it works, simply

Four ideas explain the whole model.

01

Memory

An ad doesn’t stop working when it goes off air: it fades little by little, like a perfume. Each channel at its own pace: search in days, TV in weeks or months.

02

Diminishing returns

Like sugar in coffee: the first spoonfuls change a lot, the last ones barely anything. Every extra dollar in a channel returns less than the one before, and every channel has a ceiling.

03

Things that rise together without causing each other

In summer people travel more and also think more about airlines. If the model can’t see the calendar, price and capacity, it credits the brand for what summer did. The model separates them.

04

The calibrated scale

A brand lift study is like weighing something whose weight you already know: it doesn’t replace the scale, but it corrects it. The model uses those studies to anchor its estimates.

On top of those four ideas, the model learns from your history —spend, brand and sales—, estimates everything with its uncertainty, and lets you simulate scenarios or find the budget that reaches a goal.

What it solves

What traditional Marketing Mix Modeling can’t answer.

Media → brand → business

How much your spend moves a brand metric and what that lift is worth in sales, on top of what each channel sells right now.

Your whole ecosystem, connected

Paid media, SEO, social listening, content, email and automation, web, CRM, competitors, territory and distributor network. Digital and offline, by the same yardstick.

What each channel adds

Each channel’s contribution to brand and to sales, and its marginal return: how much every extra dollar you put in adds.

Memory and saturation

How long each channel’s effect lasts and where it stops paying off: the model shows where each one sits on its curve today.

Cause, not coincidence

Seasonality, price, capacity and context go into the model, and it can be calibrated with your brand lift studies.

From goal to budget

Tell it the brand goal and the model finds the spend that gets there, with its range. If that mix can’t reach it, it says so.

CONNECT · LEARN FROM YOUR HISTORY · SIMULATE · RECOMMEND
Video

How the model works, under the hood

The technical side: each channel’s memory, saturation, external factors and how it is calibrated with brand lift studies. (Video in Spanish.)

From goal to budget

You set the goal. the model tells you how much to invest.

  • It projects your plan forward keeping your channel mix, and finds the spend that reaches the goal.
  • With its range, not a magic number: the budget comes with its uncertainty.
  • It never makes up a budget: if the goal is beyond what that mix can achieve, it tells you it isn’t reachable.
  • Thousands of scenarios in seconds, to compare options before you decide.
  • Unambiguous goals: lifting 5% isn’t the same as lifting 5 points, and the model asks you to define it.
  • Aurora on top of the model: ask in plain language and Aurora runs the simulator. The math is always done by the model.
AURORA · MMMILLUSTRATIVE EXAMPLE
How much do I need to invest to lift brand by 2 points over the next 12 months?
With your current mix, brand spend would need to rise between 18% and 27%. The channels with the most room before saturating are out-of-home and video. That brand lift translates into additional revenue within the range shown below.
90% RANGECURRENT MIX12-MONTH HORIZON
What it delivers

Results with their range, in business language.

Your brand, week by week

Your brand metric estimated every week —even if the survey is monthly— with its uncertainty band.

Where your sales come from

A breakdown of your revenue: how much comes from the baseline, the brand, performance and external factors.

Curves by channel

Each channel’s saturation curve and where it sits today: where every dollar still pays off and where it no longer does.

Marginal return

How much additional revenue every extra dollar generates in each channel, over a long horizon.

Scenarios

Shift spend between channels and see the estimated impact on brand and sales before you decide.

A reading for finance

Results in the language of the board and finance, not marketing jargon.

EVERY NUMBER WITH ITS RANGE — NEVER A MADE-UP BUDGET
For companies with several brands and regions

It grows with your business’s complexity.

Multi-brand

Several brands or units under one company, each with its own view. If your company has a single brand, you don’t see a selector.

National or by region

One model for the whole country or split by region. Variation between areas gives the model more information to separate causes, without paying for a bigger survey.

Recalibrated over time

New data is added as it comes in and the model is re-estimated periodically, at the pace your team sets.

Reliable by design

Model rigor, not dashboard rigor.

Every number with its range

Results come as a range, with their uncertainty, never as a magic number.

Validated before touching your data

It’s tested on a simulated market whose true values are known: the model has to find them without being told.

Tested against the future

With your data, the model predicts weeks it hasn’t seen, to prove it didn’t overfit.

Anchored in experiments

Your brand lift studies go in as evidence: the model can’t stray from them without a strong reason.

Honest about what it doesn’t know

It reliably identifies the best and worst channel. If two channels always run together, it tells you an experiment or regional variation is needed to separate them.

Conservative

It works on revenue, not margin, and doesn’t count what happens after the horizon: if it’s wrong, it errs low.

What data you need

The minimum to get started.

DATAHOW OFTENWHAT IT INCLUDES
SpendWeekly, by channel (and region)Date, channel, region and spend. Ideally impressions or GRPs too.
Brand metricPer survey wave (and region)Fieldwork dates, sample size and result. Another measurable brand metric, like branded search, also works.
BusinessWeekly (and by region)The outcome you choose: sales, volume, new customers or orders.
External factorsWeeklyRelative price, capacity, weather, exchange rate, holidays: whatever moves your industry.
Brand lift studiesPer study (optional)Channel, study weeks, measured result and its margin of error.

On the way in, the model checks the data: missing weeks, channels with no spend, survey waves without fieldwork dates.

Configurable to your business

It adapts to how you measure.

Channels and their role: brand or performanceYour brand metricYour business outcomeYour industry’s external factorsNational or by regionAnalysis horizonLag between brand and purchaseBrands and sub-brands
FAQ

What people always ask.

What is Marketing Mix Modeling?
A statistical model that links your sales to everything that drives them —media spend, partner activity, price, seasonality and context— to estimate how much each factor contributed and how much to invest in each one.
How is it different from a traditional MMM?
A traditional model measures what each channel sold right away, so it underrates brand advertising, which first changes what people think and only months later turns into sales. The model measures that whole chain: media, brand and business.
Does it work if I don’t only invest in digital?
Yes. The model brings in offline media, partners, distributors and associates alongside digital, and measures them all by the same yardstick.
What if I don’t have a brand survey?
You can use another brand metric with a measurable source, like branded search. What matters is that it’s measured consistently over time.
How much data history do I need?
The more, the better. As a reference, about three years of weekly data separates effects well; with less history the ranges come out wider, and the model shows you that.
How reliable are the results?
Every result comes with its uncertainty range. The model is validated on a simulated market and by predicting weeks it hasn’t seen, and it can be anchored with brand lift studies. When the evidence isn’t enough to tell two channels apart, it says so.
How often is it updated?
Data is added as it comes in and the model is re-estimated periodically —quarterly, for example— at the pace your team agrees on.
Does it need to track each person with cookies?
No. Marketing Mix Modeling works with data aggregated by period —how much you spent and what happened to your brand and sales— not with individual user tracking.
Keep exploring
Signal →Indicators →Aurora →
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