Marketing mix modeling (MMM)

Marketing Mix Modeling

Achieve efficient marketing and maximize ROI based on marketing mix modeling (MMM)

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OVERVIEW Overview of MMM

What is MMM?

Marketing Mix Modeling (MMM) analyzes marketing activities using data and statistical methods.

How MMM works

We create mathematical models to interpret and explain the complex relationships between a wide variety of variables, including environmental factors and macroeconomic data, as well as accumulated data from our client companies' advertising efforts. These models are designed to decipher and elucidate the intricate connections among these diverse factors.

BENEFITS Benefits of MMM

Effectiveness measurement and reporting

We can accurately quantify and explain the relationship between KGI and KPI from marketing investments, as well as the cost-effectiveness, including the effects of offline advertising, which were particularly difficult to see.

Improvements and optimizations

By understanding what measures are effective in achieving results and what measures are not, you can optimize budget allocation and identify areas for improvement.

Planning and forecasting

Based on highly accurate models tailored to individual companies, it is possible to predict the results of multiple scenarios, such as marketing investment amounts and budget allocation.

Related article: Image of “Why MMM is needed by marketers now”

Why is MMM needed by marketers now?

As of 2020, the introduction rate of MMM among Japanese companies remained at about 1%, but recently, new entries into the MMM field have been occurring one after another in Japan.
XICA, which has been providing MMM for about 2016 years since 8, feels a strong sense of crisis regarding this MMM trend.
Why do Japanese marketers need MMM now?
And what is the warning bell that XICA is ringing against the MMM epidemic?
We spoke to Yoshiaki Hirao, President and CEO of XICA, who has been involved in marketing for over 250 national clients and has been at the forefront of MMM.

FEATURES Features of XICA's MMM solution

Analysis incorporating spillover (indirect) effects between advertisements and carryover effects (ad stock)

Analyze the effectiveness of external promotional and sales activities beyond advertising

Visualization of medium to long term brand equity effects

Calculating optimal budget allocation and sales forecast

Break down the elements that make up sales and understand the return on investment of any marketing activity.

You can analyze not only the impact on KPIs such as "purchase intention" and "awareness rate," but also the effect on business results (KGI) such as sales.
The targets of analysis are not only the direct effects and indirect effects (ripple effects) of advertising measures, but also external influences other than advertising such as weather and competition, as well as all marketing factors such as PR, sales promotions, and sales activities, and the effects are visualized using the same index (ROI). All elements can be evaluated side by side.

Visualization of contribution value to advertising results using XICA's MMM

Visualizing the path to business results.
From recognition to results
Understand the customer journey.

In an integrated marketing strategy, customers are exposed to numerous measures through various media. Do you recognize the order in which you were involved in the measures that led to the results?
With MAGELLAN, you can comprehensively analyze every touchpoint in your marketing communications. By taking into account the synergistic effects between measures, it is possible to visualize the path that leads from cognitive stimulation to sales and other results.

Customer journey analysis for XICA's MMM

Through brand equity analysis,
it is possible to reassess the ROI of branding initiatives and predict the long-term cumulative effects on brand equity.

By taking brand equity into consideration when evaluating advertising ROI, it becomes possible to determine which advertising measures should be strengthened from a medium- to long-term perspective rather than from a short-term perspective.
Furthermore, it is possible to predict how much branding measures related to brand building and maintaining brand power will have on business results in the future.

ROI evaluation of advertising measures using MMM

It becomes possible to predict marketing effects over the medium to long term.

You can analyze and visualize the results obtained from past recognition measures and brand building (baseline) and the results obtained from the most recent marketing measures.
Additionally, when planning future promotions (posting volume, frequency, etc.), it is possible to predict results by taking long-term cumulative effects into account. This forecast allows you to formulate long-term, sustainable growth strategies based on data and make decisions on measures while checking performance.

Visualize the next budget allocation and expected results.
Automatic simulation allows you to calculate the optimal budget allocation.

It is possible to analyze the budget required for target results, or to perform an "optimal budget allocation simulation" that maximizes results within a fixed budget.
Equipped with two types of simulation functions required in the actual field. We can make suggestions when creating budget allocation materials.

Case study material: What is “MMM” that every marketer should know?

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What is "MMM" that all marketers should know about?

~ Benefits of Implementation: Insights from Three Company Case Studies ~

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Marketing mix modeling (MMM) Marketing Mix Modeling