Marketing Mix Models were introduced in the ‘80’s and give executive marketers a top-down view over the factors impacting their business, along with strategic recommendations on how to spend marketing dollars. Multitouch attribution has only been possible in the last 7 years, as more user-level data became available. Multitouch attribution gives mid-level marketers actionable insights about how marketing channels and tactics are performing.
Both of these methodologies have both pros and cons.
MMM includes both marketing and non-marketing factors which impact sales/revenue. MMM typically helps users do annual or semi-annual planning across all marketing activity. Executives need this holistic view.
MTA builds all its recommendations and insights from the user-level up. This makes MTA great for accuracy and actionability down to the lowest levels of advertising activity. Channel managers and marketing managers need this granularity.
MMM uses aggregated data, so insights at more granular levels are impossible. MMM typically requires heavy manual data wrangling and can’t refresh in real-time.
MTA can’t account for many non-marketing factors, because the data doesn’t exist at the user-level. Without these additional factors, MTA results can misinterpret marketing performance.
As advertisers become more sophisticated in their marketing activities, marketing analytics needs have grown and evolved as well. This means more advertisers want a single, unified analytic tool which provides both strategic and tactical decision support. MMM and MTA cannot be stapled together to form one unified view. This is why we have created the Unified Marketing Activation Platform (UMAP).