Web attribution vs Marketing Mix Modeling

Today, we're diving into two seemingly opposite analytic approaches. Web Tracking and Attribution and Marketing Mix Modeling (MMM). Whether you ever need to use one or the other, you need to have all the tools in the toolbox.

Web Tracking and Attribution

We start with marketing attribution as the approach that many are most familiar with. Web Tracking and Attribution is like zooming in on your digital activities. With this method we connect user behaviors directly on our website or app. This provides a granular view of what’s working in real-time. We figure our where the users come from, and when they convert. The quality of analytics depends on our ability to connect the dots really well.

Core Advantages of Web Tracking:

• Micro-Details: We count impressions, clicks and individual conversions.

• Agility: Enables quick tweaks to campaigns based on up-to-the-minute data.

• Channel-Specific Insights: We know exactly what value each channel brings.

Marketing Mix Modeling (MMM)

On the flip side, Marketing Mix Modeling as like a high-level strategist. With this approach, we compare the effect of marketing activities on overall sales. This is where it all started before the internet. MMM helps to evaluate of channels like TV ads, print or also digital marketing. But also while taking into account economic trends in the competitive landscape.

What MMM Brings to the Table:

• ROI Insights: Pinpoints the return on investment across diverse marketing channels.

• Budgeting: MMM is great to compare how investment into channels affects overall revernue.

• Strategic view: It helps with long term planning based on the insights.

MMM vs. Web Tracking

Scope of Data

• Web Tracking: Focuses on immediate, detailed digital data. The quality of data and ability to attribute conversions is key for success.

• MMM: Blends long-term data and external influences for a comprehensive analysis.

Analytical Approach

• Web Tracking: Uses all the tools we know. Cookies, fingerprinting, analytical tools to measure real-time user interactions.

• MMM: Requires sophisticated statistical models to process numbers and predict future trends.

Timing for Insights

• Web Tracking: Ideal for realtime optimization and short term desicions.

• MMM: Simply not built for speed. MMM is strong in strategic depth, making it perfect for overarching planning. Captures the cumulative impact of both online and offline marketing efforts.

Limitations

• Web Tracking: Not everything can be measured with digital touchpoints. And with time web attribution becomes more complex to achieve.

• MMM: Needs a lot of historical data. Otherwise statistical models simply will not be able to provide meaningful results.

Both models have their strengths, and both have serious limitations in some cases. A small startup with only months of good quality data will not be able to work with MMM. And an offline campaign cannot be fully measured with web attribution.

But in the current state of things, where cookies are going away, we see a lot of cases of broken journeys. Web tracking platforms are struggling to connect the touchpoints together. This makes us think of new ways to evaluate marketing efforts. Which might be new ways to improve attribution - fingerpring techniques. Or new predictive models to evaluate channels with the data there is available.