As we approach 2025, Marketing Mix Modelling (MMM) stands out as a vital tool for gaining a comprehensive view of marketing performance. By analysing historical data, MMM helps brands and businesses determine the impact of various marketing activities on sales and other key performance indicators.
This approach enables informed decisions about budget allocation and strategy optimisation.
Why does MMM Matter in 2025?
With the increasing complexity of consumer behaviour, traditional attribution models often fall short. MMM offers a more holistic perspective, by considering both online and offline marketing efforts, providing a clearer picture of what drives performance.
This view is essential for optimising marketing spend and achieving business objectives.
Key Benefits of MMM:
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Optimised Budget Allocation: MMM identifies the most effective spending combinations across channels, minimising waste and maximising return on investment.
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Enhanced Channel Synergy: By understanding how different marketing activities interact, businesses can create more cohesive and effective campaigns.
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Data-Driven Decision Making: MMM provides actionable insights, enabling marketers to make informed decisions based on empirical evidence rather than intuition.
Implementing MMM: Tips for Success
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Data Collection: Gather comprehensive data from all marketing channels, including spend, impressions, and sales figures.
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Model Selection: Choose a modelling approach that aligns with your business objectives and data availability.
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Continuous Monitoring: Regularly update your models with new data to reflect current market conditions and consumer behaviour.
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Cross-Functional Collaboration: Work closely with finance, sales, and product teams to ensure alignment and maximise the impact of your marketing efforts.
Interestingly, Google has acknowledged the growing importance of MMM in addressing the challenges facing modern marketers.
In “Marketing Mix Modeling: A CMO’s Handbook,” in February 2023, Google provided a detailed guide for building models that effectively measure and optimise marketing ROI.
As we move into 2025, embracing Marketing Mix Modelling can provide the clarity needed for modern marketing. By using MMM, you can optimise your strategies, allocate budgets more effectively, and ultimately drive better performance.
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Lottie Hippisley
