NextGen Marketing Mix Modeling

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Are you unhappy with your MMM results? Do you have more questions than your models can answer?

 

Let us introduce you to the most advanced and adaptive approach to modeling

We focus on the increasingly complex marketing landscape from a top-down perspective. We leverage the best modeling approach for each client, not "one size for all".

The latest in a sequence of timeseries modeling advances, NextGen Marketing Mix Modeling integrates several advanced modeling techniques into one unified model estimation process. Specifically, we integrate high order Bayesian pooling (5+ hierarchies), with high frequency data (daily, hourly, etc) and Dynamic State Space estimation of long term effects.

While none of these approaches is unique in themselves, unifying them into one estimation approach is exclusive to Truesight-Marketscience.

This approach allows us to better estimate the increasingly complex consumer demand equation and therefore better measure the underlying economic theory that underpins all modeling approaches.

The benefits of this approach overcome several shortcomings of traditional Marketing Mix Modeling:

  • We are able to isolate short-term impact (promotional and campaign) from long-term impact (brand based), thus giving you a more accurate and detailed estimation of media impact. 

  • More granular, high frequency data gives greater clarity on short-term effects, allowing you to better optimize media investments.

  • Higher-order pooling allows us to measure marketing effects at the appropriate level, thus overcoming aggregation bias. It also allows us to model at zip code and customer micro-segment level and therefore better align with test and control experimentation and programmatic buying approaches. 

  • Allows you to more accurately inform communication strategies through Dynamic State space, which measures the subtler impacts of Brand and Customer Experience on sales. 

  • A flexible ‘adstock’ approach allows the data to specify the advertising response and capture’s potential wear-in, decay and diminishing return effects.

A prerequisite to fully leverage this approach is that we have a complete and detailed level of data. The pay-off however is in a greater, more accurate ability to optimize and drive greater ROI improvements.

The scope of measurement under NexGen Modeling is quite comprehensive:

  • Price/offer and promotions short term lift

  • Traditional, digital and social media in the short term

  • Key environmental drivers (economy, competition, weather etc)

  • Seasonality estimated within the timeseries estimation process

  • Long-term brand impacts of changing consumer sentiment and experiences

  • Long term impact of pricing changes and policy changes

  • Interactions of short and long-term drivers

 

We obsess over building the most complete model so we can derive reliable and accurate estimates of marketing impact and response for our clients and brands.

Ultimately, the measurement has to inform decision making. It is these estimates that will inform our optimization & simulation tools and identify real ROI improvements for you.