Marketing Mix Modeling
Posted: Mon Feb 17, 2025 9:38 am
Marketing mix modeling is an increasingly popular targeting method that enables marketers to fine-tune their campaign strategies using aggregate data rather than personal or private information. While these models obviously aren’t perfect, they give marketers a good idea of the successes and failures of different interactions.
If you’re currently spending equal amounts of money on Facebook ads, search ads, and influencers, for example, a marketing mix model will help you optimize that spending and generate more sales on the same budget.
The main downside to marketing mix modeling is that it works at a macro rather than the micro scale. With that in mind, it may be more effective when combined with first-party data gathering and other activities that allow marketers to see things at a more granular level.
Contextual Advertising
Contextual advertising offers another alternative to conventional methods of cookie tracking. With third-party cookies, advertisers rely on the third party itself to target leads based on their activity on other sites. With contextual advertising, the targeting is baked into the content of each unique page that a user might visit.
The idea behind contextual advertising is to place ads on pages that are directly related to the content of the ad. If you’re selling mountain bikes, for example, you could reach out directly to a popular biking website to see if they have space to run your ads.
In contrast to cookie-based tracking, contextual advertising doesn’t rely on any specific information about visitors. People who visit a biking website are a self-selecting group, so it makes sense to target them with biking-related ads even without any more data on their browsing or spending habits.
Contextual advertising is a common-sense marketing solution that homeowner database existed long before our high-tech approaches to ad targeting. Showing a few trailers for upcoming films before a movie starts is a classic example of contextual advertising.
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As with marketing mix modeling, the nature of contextual advertising means that this strategy comes with some notable limitations. Since the context is determined separately from the intention of a user, it’s difficult to know who your content is reaching. Leads often need to engage with a brand several times before making a purchase, so user-specific retargeting will still be a critical aspect of digital marketing in the cookieless future.
With third-party cookies quickly becoming a thing of the past, marketers will have to rely on cookieless tracking and trusted opt-in channels for targeted marketing. These opt-in channels, such as email and SMS will be even more critical for ecommerce marketing strategies moving forward. Try Omnisend free for 14 days to take advantage of hyper targeted automation email and SMS workflows.
If you’re currently spending equal amounts of money on Facebook ads, search ads, and influencers, for example, a marketing mix model will help you optimize that spending and generate more sales on the same budget.
The main downside to marketing mix modeling is that it works at a macro rather than the micro scale. With that in mind, it may be more effective when combined with first-party data gathering and other activities that allow marketers to see things at a more granular level.
Contextual Advertising
Contextual advertising offers another alternative to conventional methods of cookie tracking. With third-party cookies, advertisers rely on the third party itself to target leads based on their activity on other sites. With contextual advertising, the targeting is baked into the content of each unique page that a user might visit.
The idea behind contextual advertising is to place ads on pages that are directly related to the content of the ad. If you’re selling mountain bikes, for example, you could reach out directly to a popular biking website to see if they have space to run your ads.
In contrast to cookie-based tracking, contextual advertising doesn’t rely on any specific information about visitors. People who visit a biking website are a self-selecting group, so it makes sense to target them with biking-related ads even without any more data on their browsing or spending habits.
Contextual advertising is a common-sense marketing solution that homeowner database existed long before our high-tech approaches to ad targeting. Showing a few trailers for upcoming films before a movie starts is a classic example of contextual advertising.
—
As with marketing mix modeling, the nature of contextual advertising means that this strategy comes with some notable limitations. Since the context is determined separately from the intention of a user, it’s difficult to know who your content is reaching. Leads often need to engage with a brand several times before making a purchase, so user-specific retargeting will still be a critical aspect of digital marketing in the cookieless future.
With third-party cookies quickly becoming a thing of the past, marketers will have to rely on cookieless tracking and trusted opt-in channels for targeted marketing. These opt-in channels, such as email and SMS will be even more critical for ecommerce marketing strategies moving forward. Try Omnisend free for 14 days to take advantage of hyper targeted automation email and SMS workflows.