New research reveals flaws in conventional marketing mix modeling approaches

Marketscience, an independent marketing analysis firm, announces the launch of BaseDynamics, a holistic approach to marketing mix modeling to quantify short- and long-term effects, supported by peer-reviewed research published by Marketscience founder and partner, Dr. Peter Cain of the International Journal of Research in Marketing (IJRM).

Modern mix models have focused on moving from an independent view to measuring the cross-channel and synergy effects that exist in today’s most complex buying journey. While these approaches aim to solve last-touch attribution problems and provide a more realistic estimate of the return on your investment, two fundamental issues are not addressed:

  • Marketing channel selection bias for last-touch acquisition
  • Adequate representation of a long-term brand building

Failure to address these issues leads to a misjudgment of effectiveness and a lack of credibility among finance departments. BaseDynamics addresses both of these issues directly and provides a truly holistic measurement framework.

What is the impact of the BaseDynamics marketing approach on results?

At the formal launch of BaseDynamics, Dr. Cain said: “Bringing more clarity to the real science behind analytics is critical in this era of increasing focus on metrics and automated machine learning techniques.” David Dixon, the managing partner at Marketscience, agrees, adding, “BaseDynamics has already been successfully deployed to many of our clients, where we’ve seen differences in optimal budget allocations ranging from 20% to 60% and more. Academic validation of our research, which IJRM editor P.K.Kannan considers a “remarkable and significant contribution”, only serves to confirm the credibility of our approach. ”

“BaseDynamics allows us to measure the short-term and long-term impact of marketing on a comprehensive model of consumer demand,” said Sam Tomlinson, UK and media leader at PwC. “Not only does it provide a basis for measuring the impact of reliable with the Chief Financial Officer,” added Jon Gillham, Chief Economist at PwC UK, “it is also a practical and scalable framework for modeling marketing mixes with a … academically.”