Marketing Mix Modeling (MMM) has been used to measure the impact of marketing and advertising for around 40 years.
While the exact origins are difficult to pinpoint, MMM emerged in the 1980s as a way to analyze the effectiveness of different marketing activities on sales where there was no direct or deterministic way of doing so. Early adopters were primarily consumer packaged goods (CPG) companies who had the necessary data on sales and marketing spend and had the challenge of tracking sales dispersed across various physical retail channels. Legend has it that Coke was among the very first brands to use MMM in the 80s.
A brief timeline
- 1960sThe foundation for MMM was laid with the development of econometric models.
- 1980sMMM gained traction as computing power increased and more companies began collecting detailed data on their marketing activities.
- 1990s–2000sMMM became more sophisticated with advancements in statistical techniques and software.
- 2010s–nowMMM continues to evolve, incorporating new data sources (like digital advertising data) and addressing challenges like attribution in a multi-media, multi-channel world.
It's important to note that MMM is not a static concept. It is in a constant state of iteration. To be effective on an ongoing basis it needs to continuously adapt to changes in the marketing landscape, incorporating new technologies, media channels, and data sources to provide more accurate and granular insights.
Originally published November 27, 2024 in M-Squared's Attribution Today. The original includes a masterclass conversation with William (Todd) Kirk, one of the industry's original MMM scientists, on the history of MMM. Read it at the source →