Econometric Modelling & MMM

Surface the insights that empower decision-making across your organisation

What is Econometrics & Marketing Mix Modelling?

Econometrics, and Marketing Mix Modelling (MMM) stand as pillars in the realm of marketing analytics, offering businesses the blueprint to decipher the complex dynamics of market behaviours and the effectiveness of their marketing strategies. Econometrics Modelling uses statistical methods to quantify relationships between variables, providing insights into consumer behaviour, market trends, and the impact of external factors on marketing outcomes. Marketing Mix Modelling, a subset of econometrics, focuses specifically on analysing the effectiveness of various marketing mix components such as paid, earned, and owned media as well as price and promotions, seasonality and economics to optimise marketing strategies and maximise return on investment.

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What you'll gain

By embracing Econometric Modelling with IMS, you’ll unlock a deeper comprehension of your marketing efforts’ effectiveness, ensuring every pound spent is an investment towards tangible results. Our econometric models illuminate the path to optimised resource allocation, guiding you to the most productive channels and strategies that drive the maximum sales for your marketing investment. You’ll gain the knowledge to navigate the complexities of your marketing mix with confidence, optimising for both immediate returns and long-term brand value.

Our econometric models will predict sales outcomes

We can decompose these models to show the sales drivers

Seales Decomposition Econometric Modelling

Benefits

Econometric Modelling provides invaluable insights for strategic marketing and financial planning, bridging the gap between data and decision-making, offering actionable steps to enhance marketing effectiveness. By evaluating the interplay of various factors on ROI, our methods guide strategic and budgetary decisions, paving the way for optimised marketing investments and improved business performance.

Media return on investment

Gain a detailed understanding of returns on investment across multiple media and marketing channels.

Optimise your marketing to maximise sales

Refine your marketing choices, reducing ineffective channels and increasing spend in proven sales drivers.

Balancing brand building versus performance media

Ensure that the media mix is balanced between driving interest and desire for your products and brand, and media that harvests that demand.

External Factors Understanding

Account for wide-ranging external influences such as economic trends and competitor activities to gauge their impact on your business.

Historical Insights

Draw on past performance to identify trends and drivers, improving your strategy formulation.

Campaign analysis

Discern the elements that have historically affected your ROI, both positively and negatively.

Strategic Budget Allocation

Understand how to allocate your budget across channels effectively to maximize impact.

Forecast sales against targets

Predict sales outcomes for a given media plan against the companies targets.

We Tackle Key Questions

What is our ROI by media?

Are any of the media in diminishing returns? How much should and could we spend in each media?

What is the optimal ratio of brand building versus acquisition media?

What is the optimal mix of media channels?

Which campaigns worked better than others?

How much does the economy and seasonality impact medias ability to drive sales?

When should we advertise? And for how long?

If I spend £XM next year can I reach my target sales?

What we do (our key pillars)

We believe that all analytics should be strategic, transparent and deliver deep value for our clients on an ongoing basis.

KPI FORECASTING

Advanced analytics to predict future business demand and revenue. Create the future.

RETAIL OUTLET OPTIMISATION

Optimising store numbers to drive growth and profits

INVENTORY OPTIMISATION

Product analysis and demand planning for optimal stock

PRICING ANALYTICS

Price sensitivity and price setting analysis to meet strategic goals

PROMOTIONAL DEEP DIVES

Understanding and optimising promotional mechanics to meet your business targets

CUSTOMER EXPERIENCE ANALYSIS

Deriving value from customer data to drive experience and long term value

With IMS's Econometric Modelling, transform complex data into actionable strategy, ensuring your marketing investments are both efficient and effective. Let our precision models guide your journey to maximised returns and strategic market positioning.

What it looks like

Through Econometric Modelling, IMS transforms abstract marketing data into clear, strategic insights. Discover through case studies how our bespoke models have enabled businesses to fine-tune their marketing mix, leveraging data-driven decisions to optimise spend, enhance customer engagement, and drive substantial sales growth, all while delivering the confidence to navigate the complexities of today's market landscape.