What is the future of marketing mix modeling? Forrester’s 49-criteria evaluation of marketing mix modeling vendors, The Forrester Wave Marketing Mix Modeling, Q3 2011, outlines what’s in store for the marketing mix modeling market.
Marketing Mix Modeling: Challenges
When we talk about marketing mix modeling (MMM), we’re of course talking about the sales impact of various marketing activities and their effectiveness and ROI for each marketing activity. While Forrester identifies vendors within the space, it also outlines how MMM has evolved within the enterprise.
Tracking how customers interact isn’t just about what links they click or what they choose to share. Marketing demands more nuanced models to track where and how their customers interact with a fast-increasing number of marketing touchpoints. Such demand has evolved for a few reasons:
- Customers don’t receive messages in silos. Instead, they receive them across platforms, many of which are integrated and connected.
- More than ever, marketing optimization is required to be measurable, accountable and transparent. The more marketing dollars can be stretched to achieve ROI across multiple channels, the better.
- More media channels bring more data. As a result, marketers need to integrate current and emerging data streams into their mix models and interpret them to inform actionable business decisions.
Marketing Mix Modeling: Criteria
Now that we’ve defined the marketing challenges, what resources are available to help marketers effectively meet these demands? Forrester evaluated the strengths and weaknesses of six of the top marketing mix modeling vendors. Forrester measured vendors based on several criteria, which included crucial areas identified by marketing clients:
- Not every marketing campaign is the same. As a result marketing software needs to be designed for customized settings, so marketers can run several “what-if” budget scenarios, predict future outcomes from current campaigns, and transparently share mix model insights within their organizations, all in an on-demand environment.
- Marketers may not be the decision makers when it comes to what campaign to run. Therefore it’s essential that marketers are able to set up clear, organized processes both within their organization and with their media agencies to share model insights, potential optimizations, and action plans.
- Data sets aren’t just for accounting any more. More marketing departments are investing in data integration and data management platforms that can manipulate data in various formats, and in some cases electronically aggregate them, with little effort from the marketers themselves.
To be considered, vendors also must have had at least 10 clients, shown that they were growing aggressively and supported large marketing organizations.
Marketing Mix Modeling: Leaders & Strong Performers
Factoring in both the challenges and criteria needed, what vendors have been identified as leaders within the MMM market? After having also evaluated vendors according to their current offering, strategy and market presence Forrester determined the following:
Forrester identified a “focus on enabling marketers to transparently share and collaborate on models within their organization and with their media agencies” as a trend among leading vendors. As such, other vendors will need to evolve their focus within the marketplace, appropriately.
Strong performers have positioned themselves at the forefront of methodological innovations in mix modeling, as well as offered a strong consultative approach to mix modeling. However, Forrester cited Marketing Analytics for lagging in its adoption of emerging marketing channels, such as digital, mobile and social; and Ninah for not including modeling software as a part of its standard offering.
Agree? Disagree? Want to recommend a vendor? Forrester encourages you to view the detailed product evaluations and adapt the criteria weightings to fit their individual needs through the Forrester Wave Excel-based vendor comparison tool.