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What Is MMM (Marketing Mix Modeling)?

5 min

As a marketing professional, you have likely heard the abbreviation MMM before. But what does MMM stand for in marketing? The abbreviation MMM is used to refer to marketing mix modeling or media mix modeling. While these are two separate terms, from a practical standpoint, they are the same. Alright, but what does marketing mix modeling actually do? Put simply, marketing mix modeling is one of the many forms of marketing analytics that a business can use to increase revenue, optimize decision-making processes, and improve ROI (return on investment). MMM is actually one of the most advanced types of marketing analytics, and because of this, it can be critical to the success of a business wanting to increase profitability.

So, what is MMM marketing? Marketing mix modeling marketing is essentially a type of statistical analysis that focuses on the relationship and connection between marketing and sales. By using statistics to measure and understand the connection between your marketing tactics and business outcomes, you can more effectively discover predictive relationships based on your real-life data. 


Since MMM is a more advanced type of marketing analytics, it can provide much more detailed and accurate insights for many different areas of your data. MMM analysis can help you easily see what kind of impact your future marketing and sales tactics may have on your overall performance. 

Now, you may still be wondering if marketing mix modeling is actually worth it or if you should stick to the other types of marketing analytics that you are currently using. The truth is that any business can use MMM to craft a more efficient and effective marketing system. Because it utilizes your data to help you discover what methods will and will not work best for your business, MMM is an invaluable tool for any business. But, even more important than this generalization is that with so many new privacy updates online, other methods of marketing analytics are becoming less and less reliable. 

Since MMM does not rely on personally identifiable information (PII), you don’t need tracking technologies like cookies that may turn off your customers and prospects. . Marketing mix modeling uses more accurate and granular data that does not rely on a third-party source. This allows you to get all of the valuable insights you need to improve your marketing efforts without worrying about having outdated or incomplete data.

Marketing Mix Modeling

If you want to make the most effective use of your marketing efforts, using marketing mix modeling (MMM) may be an excellent choice. As one of the most advanced types of marketing analytics, MMM can help you to get valuable and actionable insights about how to improve your marketing efforts to increase revenue and improve ROI and decision-making in the marketing process. So, how can you utilize an MMM solution in your business? The first thing to establish is how exactly marketing mix modeling works. Unlike some other marketing analytics methods, MMM focuses on identifying and highlighting the relationship between sales and marketing. In other words, you use marketing mix modeling to see what impacts certain marketing activities would have on your sales. 

Once you have collected data on how your marketing efforts are affecting your sales, you can then use that information to make more informed decisions when it comes to marketing spending and proper allocation of resources. Since marketing mix modeling analyzes many different areas of marketing data, you can get a much better understanding of where your marketing efforts are causing the most impact. In order to offer the most effective and accurate insights, MMM solutions may even include non-marketing variables in their analyses.

So, how can you start using marketing mix modeling in your business? Luckily, since MMM is gaining popularity due to the increased privacy and data protection restrictions on devices and websites, there are a number of MMM solutions on the market that you can choose from. It is important to note that MMM analysis requires access to time-series data to be effective. Historically, MMM software has been expensive and highly customized. But there is another solution. Proof MMM is Proof Analytics’ affordable marketing mix modeling software that offers unlimited modeling capabilities for easy scaling. It also continuously updates so that you can be certain that the insights you are receiving are based on your most current data.

Media Mix Marketing

As mentioned above, the abbreviation MMM can refer to either marketing mix modeling or media mix marketing, and both of these types of marketing analytics are nearly identical. The primary difference that does exist between these types of marketing analytics is that marketing mix modeling is more general and will oftentimes incorporate performance measurements from channels that are not media-based. This means that, essentially, media mix marketing is the same type of statistical analysis, just restricted to only media-related channels. Now, this may seem like because of the restriction on the channels used, media mix marketing may be less useful overall in the greater scheme of MMM solutions, but this is not necessarily the case. If your business relies very heavily on marketing through media channels, media mix marketing may be all you need.

This said, in general, it can be beneficial to utilize a few different types of approaches when it comes to effectively managing and improving your marketing efforts. For example, you can use a marketing mix modeling software solution in conjunction with a marketing resource management software solution in order to create an effective and easy-to-use marketing feedback loop. 

By integrating your MMM solution with an MRM solution, you can create a singular source of data and analysis. This source can then take into account planning, management, execution, measurement, and analysis of your marketing efforts so you can easily adjust them as needed over time to continue increasing revenue and growing your business. Now, integrating these two solutions may seem like a daunting task, but with Proof Analytics’ MMM and MRM solutions, you can create an easy and affordable solution for your business.

Marketing Mix Modeling Example

All of this talk about what marketing mix modeling can do may not be helpful in showing you what you can expect from a MMM solution or analysis. Luckily, there is a very simple and effective way that you can see just what MMM analysis offers your business. This is to look at examples. 

You can look for examples online if you want to see what your own MMM analysis may look like. In general, a marketing mix modeling example will include a “what if” scenario that tests a potential marketing activity or technique to see how it will affect the business’s sales. The analysis will take into account the causal relationships between marketing and sales as well as regression analysis to predict future outcomes.

When you are looking for MMM examples, it is important to keep in mind that different MMM tools may format results in different ways. This can mean that you may not be getting results in exactly the same way as another business has because you may be using a different tool. This said, looking for a marketing mix modeling example with data sets included can help you to see more effectively what information is coming from what piece of data. This can help you to understand what results mean, which can help you to understand your own MMM analysis results better as well.

Marketing Mix Modeling Step-By-Step

By now, you have likely heard a lot about marketing mix modeling. You may even know about many different marketing mix modeling techniques and challenges. Many businesses can use this type of marketing analytics tool to understand the relationships between sales and marketing and improve their marketing efforts quickly. This makes it an incredibly valuable tool for businesses of all sizes and industries. 

But how much do you know about how MMM actually works? If you have never used marketing mix modeling before, you may not know what the process is like or what you should expect from a marketing mix modeling solution like Proof MMM. Luckily, the marketing mix modeling step-by-step procedure is quite simple and very reminiscent of the Scientific Method. 

Just like the Scientific Method, the first step of MMM is to start with a clearly defined question or goal. Once you have decided on your goal and how you are going to measure that goal, you can move on to the next step. Next up is data collection. You need to identify a hypothesis here that will help you to identify the right data sets to use in your MMM model. Once you have collected the right data, you can move on to developing  the model. With an MMM solution like Proof MMM, your model will be automatically built based on the data sets that you have selected. The platform will then calculate the confidence level of the model, and you can make manual tweaks and alterations from there until it is where you want it. 

Finally, you can use this model to inform your decisions surrounding resource allocation and marketing efforts. Once you have completed the process, you get to repeat it. With a solution like Proof MMM, you have unlimited modeling capabilities, so you can continue going through the MMM process with your newest and most relevant data and continue making informed decisions as your business grows and your needs evolve.

Marketing Mix Modeling Techniques And Challenges

For a truly comprehensive understanding of marketing analysis, it’s important to be familiar with marketing mix modeling techniques and challenges the techniques address. Marketing mix modeling techniques can generally be boiled down to the practice of using packages of statistical data to identify relationships between marketing variables. 

The primary function of MMM software like Proof MMM is to automate this process, making it significantly faster and leading to much more reliable results. In many cases, marketing mix modeling is so complex that it may not be feasible without software help. However, with the help of MMM software, a marketing team can create a market mix modeling case study that shows them an in-depth analysis of the algorithm’s conclusions and gives them relevant strategy advice.

Marketing Modeling Mix Software

Marketing mix modeling software is one of the best solutions to the various challenges posed by marketing analysis. Marketers today need an efficient method of organizing and interpreting marketing data and correlating it to various business outcomes. This process drives effective marketing decisions that lead to positive business results. 

It’s not enough to simply know which marketing actions are effective. It’s important to have a full picture of the specific impact of each marketing element in your campaign and how those elements interact with one another. 

Marketing modeling mix software like Proof MMM can help marketing teams use statistical analysis to gain these essential insights into marketing campaigns. Using an MMM solution to link past marketing performance with predictions for future outcomes is one of the best ways to use data-driven insights to make informed adjustments to your marketing strategy over time.


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“No other analytics software delivers the easy affordability, scalable accuracy, perpetual updates & intuitive ease of understanding that Proof gives analysts, marketers & business leaders. We see Proof as the missing piece.” 

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“Proof MRM on Salesforce™ has completely changed the game for marketers.”

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“The value of data is only realized when you apply analytics to uncover the insights that improve your effectiveness. Proof is a gamechanger in this respect.”

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“Proof has delivered a powerful suite of self-serve MRM and MMM analytics that enable full-scale campaign planning, budgeting, digital asset management, collaboration, compliance and approvals, and Marketing Mix Modeling — all on the Salesforce platform and all at a price that makes it impossible for marketing teams to not say Yes to.”

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“Marketing consumes a lot of a company's cash. In B2B, it can take months to see a return. Marketers have a real responsibility to every other part of the business who also wanted that budget money; not just to make it count but to prove that they made it count.”

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“For years, marketers and business leaders have struggled to work as #OneTeam. It’s one of the longest-lasting feuds in the business world. Proof MRM on Salesforce solves this longstanding problem by delivering a best-in-class MRM platform native on Salesforce, coupled with accurate, easily understood Marketing Mix Modeling analytics.”

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“Rooted in more than a decade of award-winning work, Proof Analytics is a transformative software solution that proves the business impact of marketing and communications. Proof has been recognized by industry analysts, customers and business leaders for its innovation and technical excellence. Really well done.”

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Global Chair, Corporate Affairs and Advisory, Hill & Knowlton / WPP
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“Today’s challenging market conditions mean that Accountability, Transparency and Proof of Impact have never been more important for marketing teams. Proof MRM on Salesforce is the only marketing resource management tool built natively on Lightning and available through the AppExchange, delivering full-power functionality plus fast set up, all at a price that fits comfortably into today’s budget realities. What’s more, Proof has integrated its award-winning, automated Marketing Mix Modeling analytics into the platform. Proof MRM on Salesforce is the crucial piece for modern marketing teams.”   
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