Category: mmmtraps
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Data quality and availability
without data, you cannot do MMM, but there are so many issues; most common are: data are not available data are not structured in any way data are confidential
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What’s wrong?
nothing; we have to manage our expectations; unrealistic expectation is the main issue of MMM failure: we want to know too many details rather than a general overview data are not available, so we cannot estimate the effectiveness external factors we are not aware of also may have an impact
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What came first, the chicken or the egg?
MMM tends to add too much weight to media activity however, during a heavy promotion period, there may be other activities that impact KPI (e.g., increased distribution, visibility) other activity during promotion period may be price discounts or promo bundles
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Competitors influence
competitors may influence us both positively and negatively, depending on a category and message we are not sure what will be the competitors’ actions in the future
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Real reasons to do MMM
proof that you use sophisticated tools while spending money on marketing activities proof that we spent money wisely show off at a board meeting
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Issues with MMM
time-consuming does not invent anything, only optimizing existing spending for media channels result may vary based on assumptions may give unrealistic recommendations
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Recommendation traps
by optimizing, you will never introduce anything new; what limits your potential growth introducing more and more promotions may be harmful to your brand