Q&A: Why advertisers are leveraging marketing mix modeling to quantify external sales factors
The factors influencing sales in the digital marketplace represent an intricate tapestry extending far beyond traditional advertising. In a multifaceted environment, where any event, development and trend can affect sales, advertisers must employ a sophisticated approach to understand and attribute these myriad influences.
At the heart of this challenge lies marketing mix modeling (MMM), a powerful tool bringing clarity to the often chaotic and interconnected world of sales drivers.
In this Q&A, the Custom in-house agency at Digiday spoke with Gary Danks, general manager of AIM by Kochava, about often-overlooked factors driving sales and how advertisers can use MMM tools to quantify the elements likely to shape consumer behavior and affect sales.
What are the common factors influencing the purchase journey?
Gary Danks: While advertising is a crucial sales driver, it’s far from the only one. The idea that a consumer will spontaneously download an app and make a sale is increasingly obsolete. Such an oversimplified view fails to acknowledge the complex web of elements that work in tandem with advertising to influence consumer behavior. Consider the impact of seasonal effects such as weather or one-off events like sporting events or even a Taylor Swift concert. These factors often work subtly, shaping consumer mood and behavior in ways that are not immediately apparent.