Media Mix Minute Video Series
Decision Analyst will be posting short videos on Media Mix Modeling. The goal of the videos is to discuss various aspects of Media and Marketing Mix Modeling.
Media Mix Minute Episode 03: Pros And Cons Of Econometric Modeling
Posted by John Colias, Ph.D.
I-we explained that media mix modeling uses historical data to measure the ROI of media activities, such as, digital marketing, or TV advertising. I also explained that econometric modeling is the primary traditional approach used in media mix modeling.
Today we will discuss the key strengths and weaknesses of econometric modeling when used for media mix modeling.
What is the difference between marketing mix modeling and media mix modeling? To understand and answer this question, we have to understand how we do media mix modeling.
In order to measure the return on investment of a particularly media activity, such as TV advertising, we have to measure and quantify and control for the impact of other influences on sales activity in addition to the media activity.
Media mix modeling uses historical data on sales activity and media activity in order to quantify the return on investment of media activity.
So the media activities such as—TV advertising, radio, print, online, search engine, mobile apps, and more—are simulated to increase, to determine the amount of increase, in sales caused by these media activities.
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If you would like more information on Media Mix Modeling, or if you have any questions, or suggestions on topics for the Media Mix Modeling videos, please contact John Colias by emailing email@example.com or calling 1-817-640-6166.