Episode Transcript
[00:00:00] Speaker A: Welcome back to G2M Insights, where we help you make smarter marketing decisions.
Today, we're diving into something really exciting. How AI can help you get the absolute most out of your marketing budget.
[00:00:12] Speaker B: It all comes down to something called marketing mix modeling, or mmm.
[00:00:16] Speaker A: Mm. Sounds pretty technical.
[00:00:18] Speaker B: It is, but it's also incredibly powerful, especially with the advancements in AI. We're talking about using data to figure out what's actually working in your marketing and what's not.
[00:00:28] Speaker A: Okay, that definitely got my attention. But let's start with the basics. What exactly is marketing mix modeling? Break it down for us.
[00:00:34] Speaker B: Sure. Imagine you've got a new product launch and you're running ads everywhere. Tv, social media, maybe even some print. MMM helps you figure out which of those activities are actually driving sales and by how much.
[00:00:47] Speaker A: So it's not just about, like, clicks or impressions.
[00:00:50] Speaker B: Exactly. It's about understanding the true impact of your marketing investments. Like an ROI detective. Uncovering which parts of your marketing puzzle are really making a difference.
[00:01:00] Speaker A: That makes sense. So it's digging deeper to see what's actually moving the needle on sales.
[00:01:04] Speaker B: Exactly. That's what makes MMM so valuable for sales and marketing executives now.
[00:01:09] Speaker A: I've heard MMM used to be something only big companies could use. Is that still true?
[00:01:14] Speaker B: That was definitely the case in the past. It was complex, expensive, required a whole team of data scientists. But things have changed, thanks to AI and machine learning. Now teams of all sizes can leverage MMM to optimize their budgets.
[00:01:29] Speaker A: So it's like AI is making MMM more accessible, leveling the playing field a bit.
[00:01:34] Speaker B: Precisely. And that's one of the reasons it's becoming so popular. You don't need a huge data science team to benefit from MMM anymore.
[00:01:41] Speaker A: That's great to hear, but, you know, data privacy is a big concern for everyone these days. Does MMM address that?
[00:01:47] Speaker B: Absolutely. It's one of the big reasons it's gaining traction. MMM uses aggregated data, so we're talking about overall trends, not tracking individual users.
[00:01:55] Speaker A: So it's a way to get those valuable insights without compromising user privacy.
[00:01:59] Speaker B: Exactly. It's about measuring effectiveness, making smarter decisions, all while respecting people's privacy.
[00:02:05] Speaker A: I see why this is becoming such a big deal, but can you give me a concrete example of how a company might actually use MMM in practice?
[00:02:14] Speaker B: Sure. Let's say you're a telecom company launching a new mobile plan. Right? You're running ads across various channels. Tv, social media, search engines, even billboards. MMM can help you figure out which of those channels are driving the most signups.
[00:02:28] Speaker A: Oh, interesting. So you can actually see which channels are more effective?
[00:02:31] Speaker B: Yes. And in one recent case study, a company in this exact situation found that their digital ads, specifically on social media and search, were far more effective than their traditional media, like tv.
[00:02:42] Speaker A: Wow. So they might have been overspending on tv.
[00:02:45] Speaker B: Exactly. They were able to shift their budget, putting more money into the high performing digital channels and reducing. Reducing their spend on the less effective ones.
[00:02:52] Speaker A: Okay, I'm starting to see how powerful this could be. It's not just about, like, having data, it's about having data that can directly impact your bottom line.
[00:03:00] Speaker B: Absolutely. This particular company saw a 10% increase in new customer acquisition in just six months, and their overall ROI improved by 15%.
[00:03:11] Speaker A: Those are real results.
So MMM helps figure out where to invest marketing dollars for the biggest impact. But how does it actually work? What's going on behind the scenes?
[00:03:21] Speaker B: Well, MMM analyzes a wide range of variables to paint a complete picture. We're talking media channels like tv, radio, print, all the different types of digital advertising, even things like billboards.
[00:03:34] Speaker A: Okay, so all the different channels.
[00:03:35] Speaker B: Yeah, but it also factors in things you might not immediately think of, like seasonality, what your competitors are doing, even the overall economic climate.
[00:03:43] Speaker A: So it's not just looking at your ads in a vacuum, it's looking at all the things happening around them, right?
[00:03:47] Speaker B: Precisely. It's about understanding the bigger picture, all the forces at play, and how they might influence how people respond to your marketing.
[00:03:55] Speaker A: So MMM is doing a lot behind the scenes. But I'm curious, how does AI actually make sense of all this data? Does it just, like, spit out a magic number telling us where to spend our money?
[00:04:05] Speaker B: It's not quite magic, but it is pretty impressive. MMM uses sophisticated algorithms, often based on a statistical approach called Bayesian regression. I won't bore you with all the technical detail.
[00:04:17] Speaker A: No, please don't. I'm more of a like, show me the results kind of person.
[00:04:20] Speaker B: Rightfully so. The important thing is that these models can simulate different scenarios. Let's say you're thinking about increasing your social media budget. Right? MMM can help you predict how that might impact your sales. And it takes into account all those other variables we talked about.
[00:04:36] Speaker A: So it's like having a crystal ball for your marketing budget?
[00:04:39] Speaker B: In a way, yes. It allows you to test different strategies and see what's likely to give you the best return on your investment.
[00:04:46] Speaker A: That's super valuable. No more guessing games or relying on gut feeling.
[00:04:50] Speaker B: Exactly. It's about bringing data driven decision making to your marketing strategy.
[00:04:55] Speaker A: Now, for our listeners who are thinking, this sounds amazing, but where do I even start? What advice would you give them? What are some of the key things they need to consider before jumping into mmm?
[00:05:06] Speaker B: Well, the most important thing is data quality. MMM is only as good as the data you feed it.
[00:05:11] Speaker A: Garbage in, garbage out, Right?
[00:05:12] Speaker B: Exactly. You need to have clean, accurate data on your marketing activities and your sales. This might involve integrating data from different sources, you know, cleaning it up, making sure it's consistent.
[00:05:24] Speaker A: So step one, get our data house in order. What else?
[00:05:28] Speaker B: Then you need to decide if you're going to build an MMM model in house or use an external tool. Building it yourself gives you a lot of control, but requires significant Expertise. Platforms like G2M's make it much easier and faster, especially for those who don't have a dedicated data science team.
[00:05:46] Speaker A: Right, so it's a trade off, control versus convenience. I imagine most sales and marketing execs are going to lean toward the convenience of a platform.
[00:05:53] Speaker B: You probably right. Platforms like G2MS. Do a lot of the heavy lifting for you. They make MMM much more accessible.
[00:05:59] Speaker A: Okay, so we have our data ready. We've chosen a platform. What happens next? What's the next step in this process?
[00:06:05] Speaker B: This is where things get exciting. It's time to actually build and test your model. This might involve working with data scientists or using the AI powered tools in your platform. You're developing a model that accurately reflects your business and marketing landscape.
[00:06:20] Speaker A: So it sounds like there's still a need for human expertise even with all this amazing AI.
[00:06:25] Speaker B: Absolutely. AI is a powerful tool, but it's not a replacement for human judgment. You still need to understand your business, your customers, your goals to make sure the model is aligned with your overall strategy.
[00:06:38] Speaker A: That makes sense. It's about humans and AI working together to achieve the best results.
[00:06:42] Speaker B: Exactly. Think of the AI as your data driven co pilot. It can help you navigate the complexities of marketing measurement. The insights from MMM can be incredibly powerful. Imagine being able to go to your CEO with a data backed plan showing exactly how your marketing investments are going to drive revenue.
[00:07:00] Speaker A: That would definitely make budget conversations a lot easier. Speaking of which, we've talked about the benefits of mmm, but are there any potential pitfalls? Anything our listeners should be aware of?
[00:07:10] Speaker B: Well, one thing to keep in mind is that MMM relies on historical data. So it's great for understanding past trends and performance, but it's not a perfect predictor of the future.
[00:07:21] Speaker A: So it's not a crystal ball after all.
[00:07:23] Speaker B: Unfortunately not. The market is constantly changing and consumer behavior can be unpredictable. So you need to be prepared to adapt and refine your models over time.
[00:07:32] Speaker A: So it's not a set it and forget it kind of thing. You need to be constantly learning, adjusting.
[00:07:37] Speaker B: Precisely. The most successful marketers are the ones who use MMM as a starting point for ongoing analysis and optimization. They're constantly monitoring results, testing new strategies, refining their approach based on the latest data.
[00:07:51] Speaker A: So MMM is a powerful tool, but it's not a silver bullet. We still need to be smart about how we use it and be willing to adapt to changing circumstances.
[00:08:00] Speaker B: Exactly. Another potential pitfall is over reliance on the model's output. You know, MMM should inform your decisions, not dictate them. You still need to use your judgment, your expertise to interpret the results and make the best choices for your business. Don't ignore your gut, but make sure it's informed by solid data.
[00:08:17] Speaker A: So it's about finding that balance between data driven insights and human intuition.
[00:08:23] Speaker B: Precisely. And it's also important to understand that MMM isn't a one size fits all solution. The best approach for your business will depend on your specific goals, your industry, the complexity of your marketing mix. But with the right approach and the right tools, MMM can be an incredibly powerful asset for any marketing team.
[00:08:42] Speaker A: So MMM is a powerful tool, but it's not like you just set it up and forget about it.
[00:08:46] Speaker B: Right. It's not a one time thing. Think of it more like a continuous feedback loop. You build the model, you get these insights, you make changes to your marketing strategy based on those insights, and then you feed those results back into the model. And it helps you refine your approach even further.
[00:09:02] Speaker A: So it's about constantly learning and evolving.
[00:09:04] Speaker B: Exactly. And it helps you stay ahead of the curve, making sure your marketing is always as effective as it can be.
[00:09:09] Speaker A: This has been incredibly insightful. I feel like I have a much better grasp on MMM now and how it can help sales and marketing execs like myself make smarter decisions. But before we wrap up, if our listeners are ready to take the plunge into mmm, what's one key takeaway you would give them?
[00:09:25] Speaker B: You know, I think the most important thing to remember is that MMM is all about getting more bang for your buck, so to speak. It's about understanding which marketing activities are truly driving results and then making sure you're putting your money where it matters most.
[00:09:38] Speaker A: So if you're not using MMM to understand your marketing's true impact, you could be missing out.
[00:09:43] Speaker B: Exactly. And who can afford to do that in today's competitive landscape?
[00:09:47] Speaker A: Yeah.
[00:09:47] Speaker B: By embracing AI and mmm, you can make smarter decisions, maximize your ROI and ultimately drive sustainable growth for your business.
[00:09:55] Speaker A: Well said. This has been a fantastic deep dive into the world of marketing mix modeling. Thank you so much for joining us and sharing your expertise.
[00:10:03] Speaker B: It's been my pleasure. I always enjoy talking about how AI can empower marketers to make a real impact.
[00:10:08] Speaker C: And for our listeners, if you want to learn more about AI powered MMM, we encourage you to check out G2M's platform. It's designed specifically for sales and marketing execs, making it easy to unlock these valuable insights and take your marketing to the next level. Thanks for joining us for this deep dive into nmm. We'll see you next time.
In this episode of the Insights Achieved Podcast, we take a deep dive into marketing mix modeling (MMM) and its resurgence as a powerful tool for data-driven marketers. Drawing on insights from our G2M blog, we discuss how MMM helps businesses allocate budgets, measure ROI, and make informed decisions across diverse media channels. Learn how modern MMM techniques adapt to today’s complex marketing landscape, offering a clear path to optimize performance, improve efficiency, and drive sustainable growth. Whether you’re revisiting MMM or discovering it for the first time, this episode offers actionable insights for maximizing marketing impact effectively. This […]
