What is Marketing Mix Modeling? Everything You Need to Know About MMM

Marketing analytics takes many different forms, with marketing mix modeling being one of the most advanced. Marketing mix modeling is an effective way to help businesses increase revenue, improve return on investment, and optimize decision-making processes. With the correct use of MMM, any business can become more profitable. 

This is achieved by understanding the cause-and-effect relationships of marketing and sales. Unlike more simplified data analytics approaches, marketing mix modeling provides direct insights on many different areas of data, and what impact this has. This will help you make more strategic business decisions and improve marketing efficiency.

In this guide, we’ll cover what marketing mix modeling is and how you can apply it to your business.

What is Marketing Mix Modeling?

Marketing Mix Modeling (MMM) is a type of statistical analysis that uses data to analyze the impact of various marketing tactics on sales. This analysis is used to forecast what kind of impact future sales and marketing tactics could have. 

MMM is used to understand exactly what kind of impact different marketing activities and investments are making. Businesses can use this data to optimize their marketing spending, making sure they put the right amount of budget into channels. This is an effective way to increase return on investment (ROI) and optimize the revenue potential of a business. 

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MMM is the most advanced form of marketing analytics, as it evaluates every single marketing touch, and determines how this affects sales. MMM even considers non-marketing variables to gain more accurate insights.

A lot of data is required to gain effective MMM insights. This is because there are so many different factors that are used to determine a result. 

What is Automated Marketing Mix Modeling?

Automated marketing mix modeling does all the calculations to understand the difference between sales and marketing activities. This means anyone can make sense of the data and draw clear insights from it - even if you have no kind of analytical background. In today’s data-driven marketing world, using automated MMM is important because it lets every marketer understand advanced analytics.

The point of automated MMM is to compare various “what if” scenarios related to your marketing investments. The insights generated from the reliable data will help you make more impactful marketing decisions. 

If you need to make any fundamental marketing decisions, then using an automated MMM solution is the best approach. Let’s say you’re unsure of where to place your ad budget. You might be wondering whether you should distribute your ad budget across four different channels, or focus it all on one main channel. Automated MMM will help you understand the impact of each channel to show where spending your ad budget will make the most impact. This makes important decision-making easy. It also removes risk from big decisions. 

So MMM helps businesses manage their marketing investments and make sense of big data. It does this by helping you understand the cause-and-effect relationships in your marketing mix. This is incredibly valuable for any marketer wanting to optimize their spending and achieve better results.

Read our guide to learn more about how to overcome data challenges with MMM

How to Get Started With Marketing Mix Modeling

Any business can use MMM to make better decisions and optimize its marketing spending. By using tools like Proof, businesses can access the most advanced form of marketing analytics that calculates their “route to value”.

Read our guide to learn more about planning a route to value with Proof. 

Step 1: Find the Question You Want to Answer 

The first step to applying MMM is to define the business question you want an answer to. The more specific you are in your question, the better your analytics results will be. 

When asking this question, you will need to have a clear dependent variable. For example, this could be retention if your question is “what drives retention?”. Then you can define the independent variable or leave it open.

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Step 2: Gather the Data for Your Question

Once your question is defined, you need to pull all of the relevant data to help you answer that question. You can feed this data straight into Proofs platform.

To do this, choose your data metrics, sources, and the time frame of the data you want to pull. When it comes to MMM, using big sources of data is best.

Step 3: Run Your Data Model 

Now Proof will automatically build a model based on your data set. If the question is very complex, the model might need to be tested with different data sources and metrics.

The platform calculates the confidence level of the model for you, which you can adjust until it’s perfect.

Step 4: Repeat

Now you can repeat the same process to gain insights for all of your marketing actions. Whenever there is a correlation between a dependent variable and independent variables, Proof can set up a model to find an answer to the relationship. 

This really is the easiest way to understand your marketing efforts and the exact effect they have on your sales. 


Any business will benefit from optimized marketing spending and a more efficient decision-making process. MMM helps you understand all of your marketing activities to make sure they deliver the best possible results. 

No more guesswork, no more taking shots in the dark. MMM makes the exact effect of your marketing investments clear.

Book a demo with Proof if you want to see how you can apply MMM to your business to improve your ROI and profitability.