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Media mix modelling (MMM)

Also known as: MMM · marketing mix modelling

Definition

Media mix modelling uses statistical regression on aggregate historical data to estimate each channel's contribution to revenue, without relying on user-level tracking or cookies.

MMM was historically an annual exercise run by large advertisers with dedicated analytics teams. Open-source Bayesian implementations have made continuous, lightweight versions accessible to mid-market companies, recalibrated weekly rather than yearly.

Its advantage is privacy resilience — it needs no cookies, pixels or identifiers, so it survives tracking restrictions that break attribution. Its weakness is that it needs sufficient historical variation to learn from, so it works poorly for channels that have never had their budget meaningfully changed.

More in Performance

Attribution window

An attribution window is the period after an ad interaction during which a resulting conversion is credited to that ad — commonly 1, 7 or 28 days for clicks and 1 day for views.

CAC (Customer Acquisition Cost)

CAC is the total sales and marketing cost required to acquire one new paying customer over a given period, including media spend, agency fees, tooling and salaries.

Cohort analysis

Cohort analysis groups customers by a shared starting characteristic — usually acquisition month — and tracks their behaviour over time, revealing retention and value patterns that blended averages hide.

Consent mode

Consent mode is a mechanism that adjusts how analytics and advertising tags behave based on a user's consent choices, allowing modelled measurement when tracking consent is withheld.

Contribution margin

Contribution margin is revenue minus all variable costs — cost of goods, shipping, payment fees, returns and marketing — showing what each sale actually contributes toward fixed costs and profit.

Conversion rate

Conversion rate is the percentage of visitors or sessions that complete a defined action — a purchase, form submission or booking — within a measurement period.

All 87 terms
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