Why Marketing Mix Modeling and Digital Agencies See the World Differently (And Why That’s Okay)
Introduction: A Tale of Two Marketing Philosophies
Imagine a digital marketer and a marketing mix modeler stuck in an elevator together.
The digital marketer checks their real-time dashboard and says, "Our CTR is up 12% this hour!"
The modeler adjusts their glasses and replies, "Fascinating. Now, how does that translate to quarterly revenue growth?"
Neither is wrong—they’re just playing different games. One is optimizing for speed, the other for strategy.
In this article, we’ll explore:
✅ Why digital agencies and MMM often seem at odds (Spoiler: It’s not about right or wrong.)
✅ How their differing priorities shape their views on measurement
✅ Why the smartest teams are finding ways to make them work together
Let’s bridge the divide—with humor, respect, and a dash of data-driven wisdom.
Chapter 1: Different Goals, Different Tools
Digital Agencies: The Speed Demons
Their Mantra: "Move fast, optimize faster."
- Obsessed with real-time metrics (Impressions, Clicks, CTR, CPC).
- Live in platforms like Google Ads, Meta, TikTok.
- Success = immediate, visible impact.
Why MMM Feels Alien to Them:
- MMM doesn’t care about hourly CTR fluctuations.
- It measures long-term effects (e.g., how TV ads lift branded search over months).
- It’s like asking a Formula 1 driver to appreciate a chess match.
MMM: The Strategists
Their Mantra: "Measure twice, allocate once."
- Focused on cross-channel impact.
- Measures brand lift, halo effects, and saturation points.
- Success = sustainable growth.
Why Digital Teams Puzzle Them:
- "You’re optimizing for last-click ROAS, but what about the 15% of sales driven by offline channels?"
- It’s like asking a chess grandmaster to care about their blitz rating.
The Truth:
Neither approach is wrong—they’re optimized for different time horizons.
Chapter 2: Why Digital Agencies Are Skeptical of MMM
We Speak Different Languages
- Digital: "Our conversion API tracks user journeys!"
- MMM: "Cool. Now let’s talk about Adstock decay rates."
The Gap:
- Digital teams live in click-level granularity.
- MMM thinks in aggregate trends.
Our Clients Demand Speed
A digital agency’s typical week | An MMM project’s timeline |
Monday: Launch campaign | Week 1: Data collection |
Wednesday: Optimize creatives | Week 4: Model calibration |
Friday: Report on vanity metrics | Week 6: "Here’s how TV and search interact." |
The Reality:
Both speeds are valuable—just for different decisions.
We’re Measured on Different Things
- Digital’s KPIs: Impressions, Clicks, CPM, CTR, CPC, Conversions
- MMM’s KPIs: Incremental sales, channel synergy, channel ROAS
The Analogy:
- Digital = a chef tasting the soup every minute.
- MMM = a food critic evaluating the entire meal.
Chapter 3: Where MMM and Digital Actually Align
Both Hate Vanity Metrics
- Digital knows: Clicks ≠ sales.
- MMM knows: Impressions ≠ impact.
Common Ground:
"Let’s stop worshiping CTR and start measuring business outcomes."
Both Need Better Data
- Digital’s struggle: Cookie apocalypse.
- MMM’s struggle: Offline data gaps.
Shared Opportunity:
First-party data + MMM = a match made in measurement heaven.
Both Want Budget Efficiency
- Digital: "Let’s squeeze every penny from this Facebook ad."
- MMM: "Let’s not overspend on Facebook once it hits diminishing returns."
Synergy Potential:
- MMM sets the budget guardrails.
- Digital executes the daily optimizations.
Chapter 4: How to Make Peace (and Profit)
For Digital Agencies:
- Use MMM as a ‘True North’ – Let it guide annual budget splits, then optimize tactically.
- Demystify the Model – Ask for plain-language explanations of key insights.
- Share Your Data – Feed your conversion APIs into MMM for richer insights.
For MMM Providers:
- Speak Their Language – Replace "Adstock rates" with "How TV moves audience to your Google Ads."
- Respect Their Pace – Offer lightweight, frequent check-ins alongside deep dives.
- Find Quick Wins – Highlight one actionable insight per sprint (e.g., "Stop spending past $X on TikTok").
Conclusion: The Best of Both Worlds
The future isn’t digital vs. MMM—it’s digital + MMM.
- Digital brings agility.
- MMM brings perspective.
Together, they’re like GPS and a sports car—one plots the route, the other enjoys the ride.
The next time an MMM modeler says: "Let’s talk about long-term effects," the digital marketer shouldn’t roll their eyes.
They should say: "Cool. But can we also check our ROAS real quick?"