As Bob Dylan so elegantly wrote, "The Times They Are A-Changin'."
About 30 years ago, when marketing mix modeling (MMM) first began to be commercially available, a large number of companies showed up to leverage this new type of statistical analysis to quantify the impact of their advertising and promotion on sales. MMM was finally able to provide marketers with the ROI for some of their marketing spend. Analysis was typically performed over a limited set of available marketing drivers using some type of multivariate regression model with the form of Sales = TV + Print + Radio + Trade Promotion + Consumer Promotion. The marketing world was much simpler then, and this approach satisfied the needs of the day.
The marketing landscape has changed dramatically since those days, and the challenges marketers face today are anything but simple. Digital has reshaped consumer behavior and revised the role of marketing. With the proliferation of online tactics available to capture the attention and actions of potential consumers, marketers are now being charged with measuring and optimizing a much more complex marketing mix and trying to attribute impacts across a very dynamic consumer purchase path.