Traditional Marketing Mix Models can easily most easily be identified by their method of delivery: Excel spreadsheets and powerpoint presentations. Marketers have been relying on MMMs since the 1970’s and many MMM providers/consultants in the market today, are still basing their analysis on models initially built more than 50 years ago. These models are extremely expensive because of the man hours required to design and build the model, and the refresh is infrequent. This type of model is beneficial for a very large enterprise, where business dynamics do not change frequently.
Today, AI and machine learning (ML) has paved the way for a new wave of models that provide brands with cutting edge technology that ingests their marketing and historical sales data in minutes and can provide a bespoke MMM in less than 48 hours. This type of model is beneficial for small to large sized businesses with more than 2 marketing channels and business dynamics can change frequently.
You may also like:
What is the AI-driven attribution model?
What type of model is machine learning?
