Marketers are increasingly favouring a return to marketing mix modelling (MMM) to more accurately assess the impact of their campaigns, research developed by WARC in collaboration with Amazon Ads has revealed.
The system is especially useful in a crowded and complex retail and media environment when marketers are looking to effectively measure the success of a wide-ranging omnichannel campaign.
This is particularly pertinent when the paper indicates that consumers are now using over 20 channels to interact with brands on a regular basis.
“Retail is already the fourth-largest advertising media, with advertising spend overtaking audio, OOH & cinema, publishing and OTT/streaming, according to our data. By 2025, if the retail media industry follows its current path, it will become more valuable to advertisers than linear TV,” WARC managing editor, research and advisory, Paul Stringer, said.
“Marketers need solutions that enable them to understand the holistic impact of their advertising. This is where Marketing Mix Modelling (MMM) has a critical role to play. The goal of this knowledge paper is to educate marketers on the broad benefits of MMM, while taking a closer look at how modelling can now be used to assess retail media performance.”
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The next-generation MMM solutions that have emerged are now offering marketers rapid measurement solutions at scale, and are to produce detailed analysis by individual sales channels rather than an aggregated view.
Amazon Ads global measurement lead, Chris Rees, added:“As shopping habits continue to evolve, both retailers and marketers face ever greater complexity. Of course, with disruption, there’s opportunity.
“The rise of digital commerce has led to the emergence of retail media as a major advertising channel, and there is a need to support marketers to find creative and compelling solutions to prioritise the right media channels to amplify their brand and meet their goals.”
He concluded: “In this report, we address how Marketing Mix Modelling can help support key decisions facing marketers and provide measurement across physical and digital channels to ensure they are ready to successfully ride the next wave of digital advertising.”
