Looking at the Flaws in Conventional Marketing Mix Modeling Approaches

Modern Marketing Mix Models have focused on moving from a siloed view to measuring the cross channel and synergy effects that exist in today's more complex path to purchase

Independent marketing analytics firm Marketscience has announced the launch of BaseDynamics, a holistic Marketing Mix Modeling approach to quantifying short and long-term marketing effects, validated by peer-reviewed published research by Marketscience Partner and Founder, Dr. Peter Cain, in the International Journal of Research in Marketing (IJRM).

Modern Marketing Mix Models have focused on moving from a siloed view to measuring the cross channel and synergy effects that exist in today’s more complex path to purchase. Although such approaches claim to solve last-touch attribution problems and provide a more realistic estimate of Return on Marketing Investment, they fail to address two fundamental problems:

  • Selection bias of last-touch acquisition marketing channels
  • Proper representation of long-term brand-building

Failure to deal with these issues leads to continued misestimation of marketing effectiveness and lack of credibility with Finance departments. BaseDynamics addresses both problems head on, providing a truly holistic measurement framework.

Image via Marketscience

“Providing more clarity around the real science underlying marketing analytics is critical in these days of increasing focus on measurement and automated machine learning techniques,” said Dr. Cain.

“BaseDynamics allows us to measure the short and long-term impacts of marketing in a comprehensive model of consumer demand,” said Sam Tomlinson, Marketing & Media leader at PwC UK. “Not only does this provide a foundation for measuring marketing effects that is credible with the CFO” added Jon Gillham, Chief Economist at PwC UK. ”

It is also a practical and scalable framework for marketing mix modeling with a rigorous academic underpinning.”

You can learn more here.

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This was published through our partnership with Branding in Asia Magazine.