Browse Measurement Archives

The Problem with Programmatic: Too Much Secrecy, Too Little Trust

This Infographic Shows How Worried Digital Advertisers Are About Viewability

6 things every digital marketer needs to know about attribution

6 Ways to Connect Online and Offline in Digital Marketing

The six myths of digital marketing measurement

Some Thoughts on Digital Attribution Models

Digital Metrics Delirium: How to Drive the Results That Actually Matter

What Works Best For Measuring Marketing Impact? Top-Down, Bottom-Up Or Sideways?

<p><a target='_blank' href='http://marketingland.com/top-bottom-sideways-85913'><img src='http://insidedigital.org/wp-content/uploads/2014/07/6a8f5b76-edef-480b-a492-383ca7f4d4ea.jpg' class='alignleft' style='width: 50%'/></a></p><p>The discipline of marketing science arose from marketers’ number one need: to know what advertising efforts work. What are the forces that drive sales up or down, and by how much?</p><p><br></p><p>To answer these questions, marketers need data. In yesterday’s world of mass media broadcast advertising, aggregated data was all that marketers had to make data-driven decisions.</p><p>It was enough for marketing scientists to develop sophisticated econometrics models to fuel an entire discipline known as <a href="http://en.wikipedia.org/wiki/Marketing_mix_modeling" rel="nofollow">marketing or media mix modeling</a> (MMM).</p>Marketing (Or Media) Mix Modeling (MMM)<p>These models use historical information to analyze the incremental impact of various marketing efforts on sales. They are complicated statistical models aimed at creating a regression-based relationship between the marketing activities and sales results, analyzing the contribution of each piece of the puzzle as a percentage of the total results to determine the effect that channel had.</p><p><br></p><div><a href="http://marketingland.com/wp-content/ml-loads/2014/06/media-mix-modeling-mckinsey.png" rel="nofollow"></a><p>Illustration of MMM from <a href="http://www.mckinsey.com/client_service/retail/latest_thinking/perspectives_second_edition/~/media/183FDA8FD9824E4ABC58323820EE6AE5.ashx" rel="nofollow">McKinsey report</a> (PDF) Click to enlarge.</p></div><p><span style=""><br></span></p><p><span style="">MMM models, which were originally developed in the late 1980s, are still used today — especially by big spenders like consumer packaged goods (CPG) marketers — to deliver powerful high-level insights to the forces that drive sales.</span></p><p><br></p><p>Some of these drivers are media channels that marketers can influence, such as TV advertising; others are completely external and independent, such as weather.</p><p><br></p><p>MMM insights are typically used to do strategic scenario planning, set annual budgets and optimize the marketing mix at a high level.</p><p><br></p><p>To continue reading, click on the link below;</p><p>Source: <a target='_blank' href='http://marketingland.com/top-bottom-sideways-85913'>marketingland.com</a></p>

Online Advertising's Ability To Deliver On Branding Promise