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Marketing Mix Modeling

Get a holistic understanding of what’s driving your sales and return on investment

Today’s marketers can leverage the widest array of channels and tactics ever. Yet companies in all industries share a common challenge: how to know which activities are actually driving revenue. Marketing mix modeling is one answer to this challenge. Using past performance data, it enables you to understand and assess the incremental value of your investments so you can see what’s working and optimize marketing and spend properly.

Measure the impact of your marketing on sales

Nielsen’s Marketing Mix Modeling solution is a statistical modeling attribution approach that uses summary-level data to measure the effectiveness of digital and offline channels while accounting for exogenous factors (seasonality, interest rates, competitive spend) and company knowledge. It looks at the historical relationships between marketing spend and business performance in order to determine business drivers. Insight into these drivers enables you to allocate budget effectively across products, markets, and marketing programs.

Assessing the incremental value of all your online and offline investments

Nielsen’s industry-leading solution offers a holistic understanding of what’s driving sales. Our marketing mix models measure the efficiency and return on investment (ROI) for every type of marketing spend across channels, business units, products and markets.

We start by collecting data on marketing spend and sales performance from the brand, advertising agencies, and other partners. We combine our proprietary data with third-party data to allow analysis of both the media that consumers are exposed to and what they buy, so you can understand the impact of marketing activities on sales at a granular level.

We then build advanced statistical models that connect your marketing spend to business performance. We use regression analysis to determine how independent variables (marketing tactics) relate to outcomes (dependent variables such as sales or profit) to measure the performance of your marketing mix accurately.

Our consultants analyze and interpret the results to reveal the impact of your marketing investments by market, brand, or product. They also conduct comparisons to industry norms and provide actionable insights to help you achieve your objectives. Since no two markets are the same, we provide both global insights and region-specific recommendations to help you optimize your spending in every corner of the world. These insights enable you to understand the impact of online (search, display, online video, social) and offline (linear TV, in-store promotions) marketing activities for a unified view of marketing effectiveness.

Enabling Smarter Marketing Spend Decisions

With Nielsen’s Marketing Mix Modeling solutions, you are getting access to leading statistical approaches and data to most accurately tease out the impact of your marketing effectiveness. You’ll be able to quantify the performance of your channels in terms of ROI, revenue, and incremental sales, and leverage insights on marketing conditions to further enhance the decision-making process. You can also simulate and optimize budget allocations with Nielsen’s web-based Marketing Planner tool. Use this online platform to forecast scenarios, determine the optimal spend by channel, and make data-based budget decisions to achieve maximum ROI.

Let’s discuss your needs and our solutions.

See how we add value.