MMM (Marketing Mix Modeling) Services

MAGELLAN (XICA)

Understand the sales impact of all marketing activities.
MAGELLAN is an MMM technology developed by XICA.

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ABOUT XICA's MMM service: What is MAGELLAN?

MAGELLAN visualizes the sales impact of all marketing factors, both advertising and non-advertising.
Furthermore, you can find out the optimal budget allocation to maximize sales.

XICA's proprietary MMM service allows you to visualize the impact of all factors on sales, including online advertising, offline advertising such as TV commercials whose effects are hard to see, and advertising such as weather.
In addition to the direct effects that are captured in traditional MMM, MAGELLAN also takes into account indirect effects, residual effects, and brand accumulation effects (brand equity), so you can accurately understand the effects of marketing activities and therefore improve your intentions. Supporting decisions.
The scope of analysis is wide-ranging, including sales promotions/sales activities, delivery rates, competitive selling prices, and seasonality. MMM analysis, which is difficult to implement, can be quickly realized.
It also has a simulation function that guides you to the optimal budget allocation by considering the cost-effectiveness of all marketing activities.

OUR CLIENTS

Focused on major companies
We have a track record of doing business with over 250 companies.

FUNCTION What MAGELLAN can do

Visualization of advertising effectiveness

Magellan supports efficient and effective advertising operations by accurately visualizing the effects of advertising, including the indirect effects of offline advertising such as TV commercials and awareness measures such as video advertising.

Offline advertising, online advertising
Visualize the effects of external factors

Evaluate the impact of all promotional initiatives on business outcomes (such as sales) using a common set of metrics.

Since we use an analysis method called MMM that makes full use of data science, analysis that does not depend on cookies is possible. Even offline advertisements such as TV commercials and awareness measures such as video advertisements, whose effects are difficult to explain, can be used to understand their effects on business results. This makes it possible to analyze not only the lower funnel of the marketing funnel, but also measures from the upper funnel to the middle funnel, which are linked to business results.

Understand synergy and indirect effects

Understand which complementary strategies work well and should be strengthened when implementing awareness measures

With MAGELLAN, you can understand not only the effects of individual ads, but also the indirect effects of each ad to find combinations of ads that have a high synergistic effect. For example, the measures that are compatible with a TV commercial that promotes a brand are different from those that are compatible with a TV commercial that promotes functionality, and the measures that are compatible with the same TV commercial will change depending on the appeal axis and creative. By using data science, we can derive compatibility between measures that cannot be measured by simple ad distribution results.

FUNCTION OVERVIEW Key features

Analytical model design features

Regardless of offline advertising or online advertising, we design a customer journey (analytical model) based on a hypothesis, from recognition measures to passing through various KPIs to results. Since it is organized on the GUI within MAGELLAN, corrections can be made easily.
Drawing and analyzing the market structure is useful for validating hypotheses, visualizing the path to results, and suggesting next actions.

Image showing the design features of the analysis model

Bulk data import function

Various data used for analysis are registered once a month or once every quarter. At that time, you can upload raw data in bulk as an Excel file, or automatically register by linking data with an external system.
The required data is daily or weekly data such as "ad placement data" (GRP, number of ad impressions, number of clicks, etc.), "cost data", and customer's "results data" (number of purchases, sales amount, etc.) is.
You can also take into account the influence of external factors by registering seasonal, weather, and competitor commercial placement data.

Analysis accuracy adjustment function

Analysis accuracy can be improved by adjusting the accuracy of each multiple regression analysis.
Create a predictive analysis model from actual values over a certain period of time in the past. By comparing the waveform of the analysis model and the waveform of the real value, you can check the accuracy of the analysis.

Image showing the adjustment function for analysis accuracy

Navigation function

As a result of an integrated analysis of offline advertising, online advertising, and external factors, it is possible to compare the degree of influence on results, taking into account indirect effects and synergistic effects.
Since it is possible to understand the degree of impact on results not only by measure but also by route, it is possible to narrow down the measures and routes to focus on.
In addition, based on the results of this analysis, the following planning function allows you to calculate the optimal budget allocation.

Optimal budget allocation

Make your advertising more efficient with two simple budget simulation functions that are truly needed in the real world: a minimum budget simulation to propose a grounded advertising budget, and a budget allocation simulation to maximize results within a set budget. It can be operated effectively.

to achieve the purpose
Minimum budget simulation

Maximize results with a fixed budget

An image showing how to maximize results with a set budget

You can combine the most efficient measures within a limited budget, allocate the optimal budget to each, and simulate how far the results can be maximized.

Maximize results with a fixed budget
budget simulation

Minimum budget simulation to achieve goals

An image showing that it is possible to perform a minimum budget simulation to achieve the goal.

You can efficiently allocate budget to advertising measures, including indirect effects and synergistic effects, and simulate the minimum necessary budget to achieve your goals.

CUSTOMIZED BUDGET SIMULATION Customizable budget allocation

Customizable budget allocation

During budget simulation, even if there are measures that have already been ordered and the budget cannot be changed, the allocation can be customized according to the customer's convenience.
You can fix the parts according to your convenience and re-simulate the remaining variable parts.
In addition, in-store factors such as pile-up and the influence of sales and promotion personnel can be incorporated into the analysis. In addition, please feel free to contact us regarding the possibility of incorporating your company's unique impact into your analysis.

Image showing the customization feature for budget allocation

“Modern MMM (Marketing Mix Modeling)” Practical Guide for Marketers

MMM quantifies the effectiveness of marketing activities and supports optimal budget allocation and decision-making, but its effective implementation requires specialized knowledge in areas that many marketers are not yet familiar with. Experience required.
Therefore, from the perspective of XICA, which has been working alongside and supporting over 2016 major companies since 250, we have created a guide that summarizes the know-how to successfully implement MMM.