Marketing Mix Modeling (MMM) is getting a lot of attention

Jan 13, 2025

Marketing Mix Modeling (MMM) is getting a lot of attention -and for good reason. Measuring your marketing impact is always important!

But at Magpie, we know that a high quality MMM alone isn’t enough to optimize your marketing.

Here’s why we built our integrated marketing modeling engine to go beyond MMM and solve its limitations.

📊 Challenges when using MMM-only:

1️⃣ Branding reduces price sensitivity.
Strong branding makes customers less sensitive to price, leading to higher margins. Does your MMM take this into account if it focuses only on revenue or orders?

2️⃣ Seasonal peaks vs. campaign impact.
Usually marketing campaigns are planned when demand is high. Are you measuring the real impact of your campaigns, or is your MMM mixing seasonal demand peaks with marketing effects?

3️⃣ Always-on campaigns lack variation.
If there are no weeks without marketing spend, how can you measure the true effect of your campaigns? Even high quality models cannot work without proper data.

4️⃣ Customer loyalty varies by channel.
Does your MMM recognize the difference between loyal customers and one-time buyers? What if some channels only drive non-loyal buyers, like price comparison sites?