Introduction to Marketing Mix Modeling

What is MMM?

MMM uses historical data on marketing spend, sales, and external factors to build regression models that decompose sales into contributions from:

• Base sales — organic demand without marketing
• Media channels — TV, digital, print, radio, OOH
• Promotions — discounts, coupons, offers
• External factors — seasonality, economy, weather, competition

Why MMM?

• Privacy-safe — no user-level tracking required
• Cross-channel — measures online and offline together
• Strategic — supports long-term budget allocation
• Actionable — directly tied to ROI and optimization