Marketing Mix Modeling (MMM)
Marketing Mix Modeling (MMM) is a statistical approach that estimates the impact of different marketing channels on total revenue using aggregated data. SpendSignal uses MMM principles but modernizes them for continuous, operational decision-making rather than quarterly consulting exercises.
The Short Version
Statistical analysis that correlates spend to revenue spikes, correcting for seasonality and trends.
Visual Explanation
What Is Incremental ROAS?
Your ROAS might look great. That doesn’t mean it worked.
The Dead-End of Tracking Pixels
Pixels and cookies are dying due to privacy laws (GDPR, iOS14). Typical tracking misses offline sales, view-through impact, and cross-device journeys.
MMM solves this by ignoring user-level tracking entirely and looking at the big picture: 'When we spend more here, does revenue go up there?'
How it works
Ingest daily spend and revenue data
Apply regression analysis (e.g., Ridge Regression)
Extract coefficients that represent the efficiency of each channel
Common Misconceptions
Thinking MMM is only for Fortune 500s (Modern computing makes it accessible to all)
Waiting 3 months for results (SpendSignal does it continuously)
Confusing MMM with MTA (Multi-Touch Attribution relies on tracking; MMM relies on correlation)
Frequently Asked Questions
QIs MMM slow?
Traditional consulting MMM took months. SpendSignal runs in minutes.
QDoes MMM capture branding?
Yes. MMM effectively measures the delayed impact of brand spend on baseline revenue over time.