31st Oct 2025
What is MMM?
Jay JoshiMarketing Mix Modeling (MMM) is a causal inference model that helps businesses understand how their marketing investments, such as ads, promotions, or campaigns, drive business outcomes like sales, revenue, or leads. Unlike forecasting tools, MMM does not try to predict future sales or recommend budget splits for upcoming campaigns. Instead, it analyzes past data to reveal which channels or activities had the biggest impact on your KPIs and how effectively your budget was used. In simple terms, MMM explains what worked, what didn’t and where your marketing spend delivered the most value. By applying MMM, you can clearly identify the true drivers of performance and make more confident, evidence-based decisions about future budgets and have better budget allocation.