MMM - Marketing Performance
The Marketing Performance page provides a comprehensive view of the effectiveness of marketing investments. Key metrics and visualizations allow users to understand and optimize their marketing strategies.
Metrics Summary
The page displays key metrics, depending on the model used:
- Revenue / ROAS-Based Models:
For customers with models targeting Revenue and Return on Ad Spend (ROAS), this view highlights the predicted impact of marketing spend on revenue and overall profitability. - Conversions / CPA-Based Models:
For models built around Conversions and Cost per Acquisition (CPA), the platform emphasizes conversion efficiency, showing how spend influences conversions and cost-effectiveness.
1. Performance Overview
- Purpose: Summarizes overall marketing performance through the Marketing Mix Model, showing how key metrics interrelate.
- Metrics Included:
- Channel: The specific media or marketing channel (e.g., social media, search, display).
- Spend: Total investment in each channel.
- Predicted Revenue/Conversions: Revenue/Conversions estimated by the model as generated from each channel.
- ROI/CPA: Return on Investment, calculated as revenue generated per dollar spent, or Cost per Acquisition, calculated as dollars per conversion.
- Revenue/Conversions vs. Spend: Comparison between revenue/conversion generated and spend to highlight channel efficiency.
- Usage: Ideal for quickly assessing top-performing channels and return on investment or cost per acquisition across channels.
2. Media vs Baseline Contribution
- Purpose: Breaks down revenue/conversions into portions generated by media spend versus a baseline, or non-media, revenue component.
- Insights: Shows the relative contribution of media-driven efforts compared to organic or baseline revenue, providing a clear view of incremental gains from media investments.
3. Revenue/Conversions by Channel by Day
- Purpose: Displays daily revenue/conversions generated by each channel.
- Insights: Reveals channel performance fluctuations over time, helping identify high-impact days and trends.
- Usage: Useful for identifying patterns that might correlate with campaign launches or seasonal influences.
4. ROI/CPA by Channel by Day
- Purpose: Tracks daily ROI/CPA for each channel to assess efficiency over time.
- Insights: Highlights trends in channel effectiveness and helps in pinpointing days with exceptional returns.
- Usage: Valuable for short-term optimizations and to understand the impact of recent changes in spend.
5. Spend Effect
- Purpose: Shows how spending in each channel affects revenue/conversions, with an option to view cumulative effects over a specified period.
- Insights: Highlights the time lag between spend and its impact on the KPI, allowing you to understand the impact over time.
Usage: Helps determine how quickly marketing dollars lead to measurable outcomes, enabling optimizations around spend timing and channel efficiency.
6. Estimated Media Channel ROI/CPA Hat
- Purpose: Displays an estimated ROI/CPA value for media channels along with the 5%-95% credibility interval.
- Insights: Compare ROI/CPA metrics across channels.
- Usage: Useful for refining budget allocation based on these values. We typically recommend using both the ROI/CPA values along with the credibility range in combination in order to decide how to invest/divest per channel:
- High ROI / Low CPA: consider investing further
- Low ROI / High CPA: consider divesting
- Narrow credibility: decide with confidence
- Wide credibility: test/calibrate