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8 Advantages of MMM for Agencies and Advertisers

Navreen Aulakh
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The double-edged sword 

Advertising going into 2025 can be complex, as marketers find themselves using a double-edged sword. Between traditional and digital media, there are more platforms than ever to choose from. This makes it possible to create finely tailored campaigns to reach almost every niche audience imaginable. The ability to explore new audiences is undeniably a plus for advertisers and media agencies looking to expand their reach.

The problem is, the large number of platforms and mediums brings about a paradox of choice. Advertisers may find themselves constantly wondering what platforms will best deploy their message, and on top of that, how much to spend and where to spend it.

For advertisers and agencies juggling multiple clients, a tool to help with smart, thoughtful platform selection and regular ad performance evaluation is essential. This investment ensures advertisers use their resources effectively, leading to better results overall.

Enter, Marketing Mix Models

Marketing Mix Modelling is a statistical technique used to understand how ads affect sales or other KPIs. By looking at past data, MMM shows which ad channels, like TV, print, radio, and online ads, influence customers and are correlated with sales to determine a Return on Investment curve.

Implementing Marketing Mix Modelling can revolutionize the way advertisers and agencies approach their campaigns. This powerful tool fine-tunes ad spend allocation and streamlines workflow, ensuring resources are channeled toward the most effective avenues. In adopting MMM, advertisers can expect not only a more precise understanding of their advertising impact but also a significant enhancement in overall campaign efficiency and results.

Another step forward, introducing Arima's Self-Directed MMM

Self-Directed Marketing Mix Models enhance the MMM process. Instead of relying on an expert to handle your sales data and generate a report, advertisers have the ability to input the data themselves. This puts the control in the hands of the user, speeds up the process, and makes it a much more affordable option. Here are the advantages of MMM for media agencies and advertisers

#1: Get the Most Out of Every Dollar and Increase ROI: 

Knowing what media works is half the battle in creating a successful marketing campaign. Arima’s Self-Directed Marketing Mix Model provides a comprehensive view of how all your marketing efforts, from online ads to TV commercials, contribute to sales. This allows you to identify the most effective channels and stop wasting ad spend on tactics that aren't delivering.

Showcase what platforms are working with Arima's MMM

#2: Building trust with clients 

Using MMM shows a commitment to transparency and accountability. It gives your agency the ability to visually showcase how you use their ad spend.  This builds trust with clients, assuring them that every advertising dollar is spent with precision and purpose. This trust forms the basis for stronger brand-consumer relationships. Long-term success is dependent on fostering loyalty and advocacy, and using MMM tools is one way to do just that.

#3: Make Smarter, Faster Decisions:

Get the data you need in hours, not months. Arima’s SDMMM gives you the agility to adapt your marketing mix quickly as new trends emerge or customer preferences shift. Stay ahead of the curve with real-time data to make informed decisions that drive results.

Arima's dashboard showcases marketing insights

#4: Future-proof your strategies with sales forecasting:

Marketing Mix Models use past sales data to predict potential outcomes of different marketing strategies. Arima’s SDMMM accounts for external factors such as seasonality, pandemics, economic conditions and more. This lets you predict the potential impact of different marketing strategies before you commit. Make “what if” adjustments to your marketing mix and see how it’ll play out without the risk. 

In an evolving market, economic conditions and industry trends can cause media budgets to fluctuate. Forecasting also allows you to defend the marketing budget by forecasting the impact of budget cuts.

Arima's sales forecast

#5: Effortless Data Handling, More Time for You:

Focus on creating high-impact campaigns instead of wrestling with data. SDMMMs handle time-consuming tasks like data cleaning and preparation, freeing you to do what you do best – crafting winning advertising strategies. 

#6: Accessibility for All Advertisers:

Arima’s SDMMM levels the playing field by providing a user-friendly platform which eliminates the need for an extensive technical background. SDMMMs are accessible to everyone on your team, regardless of technical background, democratizing the power of advanced analytics. The ease of using modern platforms also makes it easier for anyone in an organization to see and understand the company’s marketing data.

“Simplifying the MMM process means it can be handled by the media planner. That puts more control in the hands of the person who makes media allocation decisions. The data becomes better, the process becomes faster and the decisions yield more business - and that's the whole point of marketing.” 

- Chris Williams, Chief Marketing Officer @ Arima Data

#7: Budget-Friendly Analytics:

Arima’s SDMMM models come at a fraction of the cost of traditional Marketing mix models. Our easy-to-use interface lessens the need for large data science teams significantly reducing the typical expenses associated with advanced analytics. This ensures businesses of all sizes can use SDMMMs without straining their budget.

Average ROAS by channel

#8: Turn Your Investment into a New Revenue Stream:

The advantages of MMM go beyond just for optimizing your own campaigns. Agencies can white-label Arima’s SDMMM as a service, unlocking new revenue streams by offering clients powerful data insights. By packaging these insights into a valuable service, agencies can recoup their investment and generate additional income, turning data into profit.


 

Arima’s Self-Directed Marketing Mix Model (SDMMM) is more than just a tool for managing media campaigns—it’s a comprehensive solution that showcases the advantages of MMM, including transparency, agility, and cost-efficiency. Whether you’re an agency handling multiple clients or an advertiser looking to optimize your marketing budget, SDMMM helps you leverage the advantages of MMM to make smarter decisions, build client trust, and unlock new revenue opportunities. Move beyond guesswork and start making data-driven decisions today with Arima’s SDMMM.

To learn more about the advantages of MMM, visit www.arimadata.com/products/mmm or book a demo.

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