Media Mix Minute: Episode 02
What is the Difference Between Marketing Mix Modeling and Media Mix Modeling?
Media Mix Minute: Episode 02 Transcript
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 particular 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. So, for example, to do, and this is called marketing mix modeling, and to do marketing mix modeling, we control for media activity, promotions, price, economic conditions, and competitor activity. These [are] additional factors which also influence sales.
And in order to measure the impact of the media activity itself, we have to measure the impact of these other things and take out or extract their impact in order to properly measure the impact of the media itself. So, if we don't do this then, the marketing mix modeling, then where we could get a wrong answer in terms of "What is the return on investment of the media activity itself?" We can get a biased answer. So, is marketing mix modeling different from media mix modeling? Yes, it [marketing mix modeling] does do some some different things. It measures the impact of promotions and prices and so forth and competitor activity, but unless we do the marketing mix modeling, we can't properly do the media mix modeling.
And, in that sense, media mix modeling and marketing mix modeling are ultimately the same thing from the media perspective.
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