Marketing Mix Modelling vs Multi-Touch Attribution vs Cross Channel Attribution
Why do you need MMM or MTA?
Every marketer needs to know where to spend their budget to get maximum returns. There are different methods/models in analytics and data science to help the marketer makes sense of there spend vs returns.
Let's try and break them one by one.
Marketing Mix Modelling (Media Mix Modelling)
Analyses most of the offline data like TV, Print & radio & gives a high-level picture of what is working and to invest. It takes into account a holistic view of the market environment like the price, seasonality, weather etc. Basically the effect of these factors on the performance of any marketing campaign. This is mostly done couple of time a year max.
Multi-Touch Attribution
MTA takes more of a ground-up approach as it looks at user journeys and tries to ascertain their conversion paths. Every touchpoint in the user journey is assigned a specific weight and feeds into the MTA analysis. It is more of a real-time digital play when compared to MMM which is mostly historical in nature.
Let's look at the Pros & Cons of both approaches:
MMM - Pros
1. Macro-level & strategic in nature.
2. Financial implications of spend (ROI)
3. Longer time frame & context for the brand
MMM- Cons
1. Not real-time hence delays optimization
2. High level hence difficult to go deeper into specifics of user journeys
MTA - Pros
1. Quick response is possible
2. Helps understand which channels work best together & what does not
MTA - Cons
1. Misses offline as the most emphasis on digital
2. Baseline conversions which happen without any marketing are missed
3. Better than last-click attribution but still restricted to one algorithm
Due to this disconnect between both MMM & MTA are run at different times to gauge overall marketing.
Cross-Channel Attribution
If we use a common key like the time we can stitch together both MTA & MMM. Using advanced analytics to allocate proportional credit to each touchpoint across be it online or offline channel, leading to the desired customer action.
Let's try and break them one by one.
Marketing Mix Modelling (Media Mix Modelling)
Analyses most of the offline data like TV, Print & radio & gives a high-level picture of what is working and to invest. It takes into account a holistic view of the market environment like the price, seasonality, weather etc. Basically the effect of these factors on the performance of any marketing campaign. This is mostly done couple of time a year max.
Multi-Touch Attribution
MTA takes more of a ground-up approach as it looks at user journeys and tries to ascertain their conversion paths. Every touchpoint in the user journey is assigned a specific weight and feeds into the MTA analysis. It is more of a real-time digital play when compared to MMM which is mostly historical in nature.
Let's look at the Pros & Cons of both approaches:
MMM - Pros
1. Macro-level & strategic in nature.
2. Financial implications of spend (ROI)
3. Longer time frame & context for the brand
MMM- Cons
1. Not real-time hence delays optimization
2. High level hence difficult to go deeper into specifics of user journeys
MTA - Pros
1. Quick response is possible
2. Helps understand which channels work best together & what does not
MTA - Cons
1. Misses offline as the most emphasis on digital
2. Baseline conversions which happen without any marketing are missed
3. Better than last-click attribution but still restricted to one algorithm
Due to this disconnect between both MMM & MTA are run at different times to gauge overall marketing.
Cross-Channel Attribution
If we use a common key like the time we can stitch together both MTA & MMM. Using advanced analytics to allocate proportional credit to each touchpoint across be it online or offline channel, leading to the desired customer action.
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