MMMs seem to be a hot topic right now with clients and brands looking to get the most out of their advertising dollars. I’ve been spending time diving into what’s changed in MMMs over the course of my career and what is driving the increased need and discussion around them as of late, along with why it’s so important for brands to explore this measurement solution.
Historically, MMM has been a tool used primarily by large corporations with large budgets and dedicated data science teams. This is because traditional MMM required complex statistical models, large datasets, and significant computational resources. However, with advancements in technology and the increased accessibility of data tools, smaller brands now have access to more affordable and user-friendly solutions that can deliver similar insights.
Why are MMMs so important?
Increasing Complexity of Marketing Channels:With the rapid growth of digital marketing, social media platforms, search ads, and more, brands are managing a diverse set of channels and data. MMM helps them understand how these various channels work together and what’s driving conversions or sales, making it easier to navigate this complex ecosystem.
Optimizing Budgets in a Competitive Environment: Smaller brands often have more limited marketing budgets compared to larger companies. MMM allows them to allocate their resources efficiently across channels, ensuring they are maximizing their ROI. This is crucial when every dollar spent needs to work harder to compete with larger players who might have deeper pockets.
Data-Driven Decision Making:Marketing has become more data-centric than ever before. Small businesses now have access to a wealth of customer behaviour and campaign performance data. MMM enables them to analyze this data comprehensively, identifying what’s truly driving growth and which strategies aren’t working, allowing for smarter, data-driven decisions.
Measuring Long-Term Impact:Unlike simple short-term tracking tools, MMM can evaluate the long-term effects of marketing activities. For smaller brands, it’s important to understand the lasting value of their campaigns, especially when building brand awareness and customer loyalty over time, rather than just focusing on immediate sales results.
Enhanced Precision:With the growing availability of affordable tools and platforms, MMM has become more accessible. Smaller brands can now use these tools to fine-tune their marketing strategies, making adjustments based on data rather than assumptions, which was often the case before.
Working with smaller brands, I’m more optimistic than ever that my clients now have access to more tools and measurement. MMMs empower these brands to maximize their investments, make smarter decisions backed with data, and stay competitive in a complex media ecosystem where it’s harder and harder to capture consumers attention. I’m excited to dive in and help clients allocate their budgets smarter and maximize their ROI.
Please reach out to me or the InvolvedMedia team to learn more on how we are working towards empowering businesses of ALL sizes with the power of MMM analysis by making it accessible.
Source: eMarketer