8.4
Marketing Mix Modeling
A regression on aggregate historical data that estimates each marketing input's contribution to sales.
No single originator; econometric sales-response modelling from the 1960s onward
What it does
Regresses aggregate historical data to attribute sales contribution across channels. Back in favour now that user-level tracking has degraded.
When it breaks
Correlational. Uncalibrated by experiment it moves budget systematically to the wrong channel. And whoever builds the model can largely choose the answer.
Case
P&G cut over $200 million of digital advertising spend in 2017 after media modelling and transparency audits, and increased reach by 10%. Marc Pritchard reported the removed spend was largely waste, reinvested into higher-reach media.
Adweek · P&G's $200m digital cut ↗In the wild
Unchecked · not part of the tier
What people have written about this tool in the last twelve months. A machine found these and nobody has read them. Everything above this line was checked by hand.
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