Vinterior: Building a Media Mix Model
What is Media Mix Model (MMM)
A bespoke MMM enables you to understand the true value of the entirety of your advertising mix – organic and paid, digital and traditional.
By modelling the impact of search demand, marketing activity (spends, discounts, etc), seasonality and other relevant contributing factors per business, we can clearly decipher what is contributing to sales, by how much and at what cost/return.
This is often an incredibly helpful tool to create as a starting point in data science work, enabling us to answer a plethora of questions with clarity thereafter.
MMM allows you to:
- See a truer picture of CAC, ROAS, KPIs by channel (organic and paid).
- Confidently invest in channels driving incremental returns.
- Align founder, c-suite, investors etc on source of truth for decision making.
- Have objective answers to “what’s caused X KPI to change this month/period vs another”.
- Understand “ad stock” – how long it takes for spend to mature into sales.
- See suggested optimal cross-channel budget splits to achieve X KPI (profitability, revenue growth etc) when increasing overall spend considering diminishing returns.
Vinterior is a business primarily built on intent-based organic and paid search. They knew that others in the industry got good value from advertising on social media, however, click based measurement systems always indicated not to invest more in the Facebook ads ecosystem. They wanted to understand the true incremental value that their top of funnel channels – Meta and out of home – were contributing, and at what cost and return.
BARK scaled up advertising across Meta, and developed a Media Mix Model to evaluate the impact of paid social on their customer acquisition. We found that paid social drove significant impact and in the wake of the experimentation, paid social became consistently 40-50% of Vinterior’s digital budget, with other channels calibrated accordingly.