Under the Hood Part 6: The benefits of Automated MMM
What are the benefits of Automated MMM? Using Automated MMM allow companies to use modeling for all their business units, brands and product categories on a global scale. Modeling on a weekly or monthly basis can only be done with automating the model.
The consequence of slow and expensive modeling is that a lot of companies are doing it only in critical countries or for the very critical product groups. We haven’t seen one single company where they can scale it globally for all business units, product areas and brands. Marketing mix modeling is used in quite a high proportion by the largest brands in the world but it’s very limited and covers a very small part of the whole scope. The reason is the low execution speed. Defining the models and executing them is just taking too long.
“We haven’t seen one single company where they can scale it globally for all business units, product areas and brands.”
A lot of companies that we meet are only modeling for a few of their most important countries out of 170 countries in total in their modelling. They execute the modeling once or twice per year. Before marketing used to include an autumn campaign and a spring campaign but now marketing is always on. From direct marketing to an explosion of marketing categories. So we’re beyond yearly analysis and most of our clients want to do it on a monthly or sometimes even weekly basis. And that can only be done with an automated model.