Published On: 2023-10-19
In a marketing world upended by privacy initiatives like Apple's iOS14, Google'sn latest priavcy sandbox, and Intelligent Tracking Prevention, the old ways of paid media measurements have essentially crumbled. The era of effortlessly tracking clicks to conversions is behind us.
With our latest feature: Marketing Mix Modeling (MMM), Lifesight steps onto this complex stage as an irreplaceable compass, directing marketing investments with newfound precision. MMM capitalizes on historical data to deliver an actionable budget that can be optimized based on your needs. It empowers marketers to make more intelligent budget allocations while providing the nimbleness required to adapt to today's shifting marketing landscape.
Lifesight’s Marketing Mix Modeling empowers you to think beyond a single channel or a campaign. It harnesses advanced machine learning algorithms to zoom out and evaluate the bigger picture—how your advertising dollars influence all-important KPIs, with a focus on correlation over causality.
The platform quantifies the true incremental value each channel adds to your business, going beyond the noise of direct, organic, and unidentified sources. This empowers marketers with the intelligence to strategize.
But wait, there's more! MMM on Lifesight serves tailored recommendations for fine-tuning your ad spend across diverse channels, all designed to supercharge your ROI. Plus, the freedom to play around with what-ifs: tweak variables like budgets, ROAS, or CPA, and use predictive modeling to forecast the likely outcomes.
Your model's predictive capabilities can be scrutinized through a trend line that compares actual KPIs against predicted ones based on historical data. This diagnostic feature allows you to assess the model's accuracy in forecasting revenue and fine-tuning your strategies.
Together, the clustered columns of the graph show how much you spend on all platforms, and the line that shows your Key Performance Indicators (KPIs) stands in contrast. This enables you to effectively measure the efficiency of your platform spends relative to your established KPIs, empowering you to allocate funds more strategically.
A detailed table breaks down ad spending on diverse platforms and pairs it with corresponding metrics such as impressions and clicks. This offers you an insight into which platforms are commanding the most engagement and enables data-driven decision-making for future campaigns.
A time-series table shows you the predicted value of the incremental influence each channel has on your KPIs. This allows you to view your incremental revenue derived from paid media, helping you to understand which channels are truly additive to your bottom line and warrant further investment.
Incorporating these metrics into your dashboard not only provides a comprehensive view of your marketing performance but also allows you to conduct granular analysis. This facilitates more effective decision-making processes, ensuring that each dollar spent is a dollar well-invested.
MMM on Lifesight is designed to be handy and requires no technical assistance to set up & run. To begin any model, start with:
1: Setting up the objective
Kick off by defining your business objectives and KPIs. Ensure clarity around your marketing goals, setting the stage for what comes next.
2: Data Integration Data is your North Star. Prepare channel-specific historical spend, revenue metrics, and other key variables.
3: Model Building Upload your data to feed your model, map the schema by associating your input data with Lifesight's data types, and keep an eye on model accuracy. If things aren't up to the mark, revisit Stage 2 for refinements.
Once the model hits your accuracy benchmarks, examine & implement the first wave of insights. These will become the cornerstones of your budgeting strategies.
Leverage Lifesight's specialized Marketing Mix Modeling to take your marketing efforts to the next level and optimize channel performance.