The renaissance of Marketing Mix Models: 3 ways to improve your measurement

Evolving marketing mix models can help advertisers remain relevant, actionable, and accurate. | [YTAM REVIEW x MEASUREMENTS_V3 (1).gif] Marketing Mix Models (MMM): What Was Old Is New Again Marketing mix models (MMM) are experiencing a renaissance. Given changes in privacy regulations, MMM leads as a trusted, durable, cross-channel measurement solution. Evolving MMM methods can help advertisers remain relevant, actionable, and accurate in a new, digital-first marketing ecosystem. To make the most of your MMMs, here are three things marketing leaders should consider. Boost accuracy with reach & frequency data It continues to remain a priority for CMOs to demonstrate the ROI of their marketing investments — and increasingly so. MMM can help. While there’s no standard approach, [a new Google POV]() shows that reach and frequency data inputs provide more accurate optimizations and ROI estimates. Industry measurement experts Nielsen and Analytic Partners have also identified approaches to modeling reach & frequency, delivering more actionable insights. [Fred Chasse_250x179.jpg] “We have incorporated Google’s R&F data within Commercial Analytics and are excited to continue to enhance the depth of insight and further optimize marketing investments.” Calibrate with experiments MMMs are a great solution to help marketers evaluate their investments equitably, but they lack the precision of a well-designed experiment. Recent findings show how experiments can strengthen MMM outputs and give more credit to sales driven by marketing efforts. Experiments, the most accurate measurement of ROI, could exponentially improve MMM outputs. [84piechart_250x179 white.jpg] According to [NCS]() and Nielsen, calibrating MMMs with the results of causal experiments increased revenue and ROAS attributed to YouTube by 84% on average.1 Consider measuring the long-term effects Most MMMs capture relatively short-term effects, which can lead to undervaluing brand-focused media. Consistent brand building has compounding effects, helping brands remain salient among consumers as they move through their purchase journey. This brand equity drives long-term sales and ultimately contributes to higher ROAS. New approaches are emerging to help marketers evaluate the longer term. Just ask Subway.2 💡 Ask your account team for recommendations on how to increase the ROI of your Google media. [READ MORE]() [wortharead.jpg]() Privacy, performance, and measurement don’t have to be at odds. By embracing solutions like experimentation and Google AI, marketers can enable more accurate measurement and deliver stronger results. [[Think with Google]()] Consistently investing in brand-building drives growth, efficiencies, and business longevity. Deprioritizing these investments reduces awareness, lowers long-term profitability, and could take years to recover from. [[Nielsen]()] The resurgence of MMMs requires CMOs to decide between several measurement partners – or even consider building an in-house solution. There are a few key steps & tips to consider. [[Think with Google]()] Sources 1 Commissioned Nielsen MMM analysis, MMM + Experiments Research "Using Experiments to Strengthen Marketing Mix Models"; n=10; 2020-2022 2 Google-funded Ipsos MMA MMM analysis, March 27, 2022 - March 26, 2023 How was this edition? [LinkedIn]() [LinkedIn]() [Twitter]() [Facebook]() [Facebook]() Terrible Bad Neutral Good Excellent Got this as a forward? [Subscribe to Re:View]() [Twitter]() [Facebook]() [Facebook]() This email was sent to {EMAIL} because you indicated that you are willing to receive occasional YouTube product-related emails. If you do not wish to receive such emails in the future, you may [unsubscribe here](/MTcyLUdPUC04MTEAAAGPd9qYWFir-WrnL49M2Bj2Ga4qqWeTtmaa7OXSjGuYDFZcO9e0gPPBVqQxgecqtIzgKDlPiXY=). © 2023 Google LLC, d/b/a YouTube, 901 Cherry Ave, San Bruno, CA 94066