# Marketing Mix Modeling

Canonical URL: https://babadook.tech/modules/marketing-mix-modeling
Entity: modules
Content hash: 78475453b33a751c1137ac7b6ab8c1eba57e3cdb6bfadb2b9c95edd6f7641f9b

Bayesian marketing mix models that quantify the incremental impact of each marketing channel accounting for saturation effects, carry-over, and external variables.

Bayesian marketing mix models that quantify the incremental impact of each marketing channel accounting for saturation effects, carry-over, and external variables.

## know-where-every-dollar-goes

Know Where Every Dollar Goes Marketing Mix Modeling uses Bayesian statistical methods to decompose total conversions into contributions from each marketing channel. The model accounts for saturation effects (diminishing returns as spend increases), carry-over effects (impact that persists after spend stops), and external variables (seasonality, competitive activity, macroeconomic factors). The result is a clear picture of each channel's true incremental impact — and an optimization model that shows where your next marginal dollar should be allocated for maximum ROI.

### data Viz

## MMM Specifications

- **Method:** Bayesian hierarchical with MCMC sampling
- **Effects:** Saturation curves, carry-over (Adstock), base decomposition
- **Variables:** Seasonality, competitive, macroeconomic, promotional
- **Optimization:** Budget allocation optimizer with constraints
- **Refresh:** Weekly model refresh with new data

## features

bayesian: true

carry over: true

saturation: true

external vars: true

## Relationships

### products

- DXP — https://babadook.tech/products/dxp

### capabilities

- Advanced Analytics — https://babadook.tech/capabilities/advanced-analytics

### sub modules

- Marketing & Campaigns — https://babadook.tech/sub-modules/marketing-campaigns

### use cases

- Marketing Automation