The marketing mix modeling library
Everything I'd want a new marketing scientist to read, use and download: how MMM works, how to check it, how to turn it into a budget decision, and an honest look at every library and vendor.
Marketing mix modeling (MMM) is a statistical model of how your sales respond to marketing and everything else going on in the business, used to decide where the next dollar of budget should go. It's an old technique that has come back into fashion because it doesn't need to track individual users, which matters a lot more since Apple, the browsers and the regulators made user-level tracking unreliable. I've built these models for companies like Monzo Bank, Booking.com and The AA, and I've taught the method to a lot of marketers, and in my experience the hard part is rarely the regression. It's knowing which question you're asking, whether the data can answer it, and how much to trust the answer.
This library is organised around that. Every guide has something you can use: a calculator, a simulator you can break, a template, a dataset or working code. The numbers in the widgets are invented or yours, and each page says which. If you're new to the topic, the reading path below is the order I'd go in.
Start here
Ten guides, in order, that take you from "what is this?" to a budget recommendation you can defend.
- Step 1 What is MMM? Marketing mix modeling estimates how much each marketing channel, and everything else that moves sales, contributed to your results, using only aggregate data over time. Here's how it works end to end, with a model you can fit in your browser.
- Step 2 Incrementality Every impact claim has a missing half: what would have happened anyway. Here's how to define incrementality, calculate iROAS, and see why the ad platform's number is usually the optimistic one.
- Step 3 Measurement plan The most expensive mistake in marketing mix modeling happens before any data is pulled: nobody agreed what decision the model is for. A one-page brief and a simple measurement plan fix that.
- Step 4 Data requirements Most marketing mix models fail at the data, not the maths. Here's what to collect, how much history is enough, why spend variation matters more than row count, and how to audit a messy handoff before you fit anything.
- Step 5 Adstock Adstock is how a marketing mix model lets this week's ads keep working next week. The idea is simple; the conventions, the shapes and the estimation are where people trip up.
- Step 6 Saturation curves A saturation curve is how a marketing mix model says that spend has diminishing returns. The family you pick and the range of spend you've actually observed decide more of your budget recommendation than most people realize.
- Step 7 Model validation A marketing mix model that fits last year's sales beautifully can still give you the wrong budget. Validation means checking prediction, stability and causal credibility separately, because they fail separately.
- Step 8 MMM calibration A lift test is the best evidence you'll get about one channel, and a marketing mix model is the best view you'll get of all of them. Calibration is how you combine the two without letting a precise answer to the wrong question take over.
- Step 9 Budget allocation A budget allocator moves money to wherever the next dollar buys the most. The maths is the easy part; the hard part is knowing which curves and constraints to trust.
- Step 10 Presenting results Most MMM readouts end with a decomposition chart and a table of ROIs, and then nothing happens. A useful presentation leads with the decision, shows the range, and tells people exactly what would make you change your mind.
Foundations
What marketing mix modeling is, what it is for, and how it compares with the other ways of measuring marketing.
How the model works
Adstock, saturation, baselines, priors and the regression underneath, with the maths you can play with.
Experiments and incrementality
Geo tests, holdouts, lift studies and the statistics you need to design them and calibrate a model with them.
From model to decision
Budget allocation, marginal returns, profit, scenarios and how to tell a CFO what the model says.
Open-source libraries and code
Robyn, Meridian, PyMC-Marketing and the rest, plus Excel, Python and R walkthroughs you can run.
Vendors and platforms
The companies selling MMM, incrementality testing and attribution, and how to choose between them.
Research and reading
The papers, books and ideas the field is built on, explained for people who have to use them.
Templates, data and practice
Datasets, glossaries, interview questions, courses and templates to download.
Free downloads
Templates, datasets, notebooks and scripts from across the library. All free, no email required.
