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What are the disadvantages of MMM?

by

Brian Plant
| Last Updated:
September 8, 2024

Here are the key disadvantages of Media Mix Modeling (MMM):


  1. Data requirements:

    • MMM requires a large amount of high-quality historical data, typically at least 2 years worth.

    • This can be challenging for small businesses or startups with limited historical data.


  2. Data collection and quality issues:

    • It's often difficult to collect all the aggregated data needed for an MMM analysis.

    • Incomplete or inconsistent data can limit the model's effectiveness.


  3. Limited granularity:

    • MMM often operates at an aggregate level, analyzing channel effectiveness rather than individual campaigns or creatives.

    • This makes it challenging to identify specific elements within a channel that drive performance.


  4. Difficulty with newer media channels:

    • MMM can be less effective at measuring the impact of emerging or less-established media channels due to lack of historical data.


  5. Budget requirements:

    • MMM only starts making sense when a company reaches a certain scale and media budget size.

    • You need to create variability in your marketing mix to see the impact of each channel, which requires a larger budget.


  6. Limitations in B2B contexts:

    • MMM can be trickier to implement in B2B environments compared to B2C.

    • It assumes a homogeneous population, which doesn't account for different B2B roles and personas.


  7. Model assumptions and complexity:

    • MMM relies on various assumptions and can be complex to implement, often requiring specialized expertise.


  8. Slow speed and inflexibility (for traditional MMM):

    • Traditional MMM can be slow to produce results and inflexible to changes in business questions or data environments.


These disadvantages highlight that while MMM can be a powerful tool, it has limitations and may not be suitable for all businesses or marketing contexts.

Interested in learning more? Chat with our team.

Interested in learning more? Chat with our team.

Interested in learning more? Chat with our team.