How Brands Are Navigating Media Fragmentation With a Return to Marketing Mix Modeling
Source:
Next wave measurement: Marketing mix modelling in the age of retail media, WARC, Jul 2023
This evolution is evident in the increasing adoption of MMM. According to data from WARC’s Marketer’s Toolkit survey, around 41% of brands use MMM to evaluate the impact of their marketing investment, as it can produce detailed analysis by an individual sales channel rather than an aggregated view, helping brands improve their retail partner and retail media strategies.
Unlocking synergies to drive successful outcomes
More than half (56%) of U.S. marketers[2] are now working with five or more retail media networks. Research has shown that advertising on multiple media channels drives higher reach and incremental ROI compared to advertising on just one channel. This is because of the synergies that exist between different channels. Television, for example, is known to have an impact on search, with TV advertising driving an uptick in direct, organic, and branded searches. By using aggregated signals to quantify the impact of different inputs including marketing (such as television, radio, digital, and more) and business outcomes (such as sales, brand awareness, or customer acquisition), MMM helps brands identify the optimal mix of media channels to achieve their marketing objectives and is already driving value across the industry.
Source:
Next wave measurement: Marketing mix modelling in the age of retail media, WARC, Jul 2023
“Our clients are increasingly seeking insights that navigate the intricate integration of retail and traditional media. The resurgence of MMM is essential, evolving to decode the complex signals within this blended landscape, ensuring strategies are both reactive and predictive,” said Paul Cuckoo, head of analytics at PHD Worldwide. “It marks a shift toward a more refined, adaptive analysis, enabling marketers to not just be responsive but anticipatory, shaping nuanced consumer journeys in a world where the convergence of media channels is the norm.”
Marketing mix modeling can help marketers understand how effectively different channels drive in-store versus online traffic and sales. A recent study by global insights firm Analytic Partners highlighted how online ads on Amazon can drive sales through other retail channels, demonstrating the relationship that clearly exists across channels and activities.
Source:
Next wave measurement: Marketing mix modelling in the age of retail media, WARC, Jul 2023
Leveraging MMM can help marketers understand “hybrid” shopper journeys and the synergies between retail media and other channels, which has the potential to drive efficiency and unlock incremental ROI.
[1] Gartner’s Customer Data Survey: The 360-Degree View of the Customer Is More Myth Than Reality, January 19, 2022
[2] Retail Media Networks: A Forced Marriage or Perfect Partnership?” ANA, 2023
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