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What data you need for marketing mix modelling.

The model is the quick part. The data it learns from is the project.

  • 6 minute read
  • 6 sections

Part 1

What the model learns from

A marketing mix model estimates what each channel contributed by watching how a client's outcomes moved when their spend moved. It needs no tracking, no cookies and no user-level data, which is why interest in it has returned as tracking has become less complete.

The catch is in the first sentence. If spend on a channel never changed, the model has nothing to learn from, and if the history is short, it cannot separate a channel's effect from the season it happened to run in.

Part 2

The minimum shape

Five things, and the first is the one most often got wrong.

  • An outcome series

    Revenue, orders or leads from the client's own system of record, not the conversions each platform attributes to itself. The model is meant to decide the attribution, so it cannot be fed somebody else's.

  • Spend per channel per period

    Usually weekly, with impressions or clicks alongside where the channel reports them. Every channel, including those with no reporting API.

  • Enough history

    Enough to cover several full seasonal cycles, which in practice means years of data rather than months.

  • Outside factors

    Price changes, promotions, holidays, stock problems, distribution changes. Anything else that moved sales, so the model does not credit it to whichever channel was spending at the time.

  • Consistent geography

    If you model by region, spend and outcomes both have to be split the same way, for the whole history.

Part 3

Why preparing the data is most of the work

History that looked complete turns out to have holes: an account paused and reconnected, a channel renamed halfway through, a currency that changed, a conversion definition revised in the second year. Spend that never had an API sits in spreadsheets in three different formats.

Each of those has to be repaired before the model sees it, because the model cannot tell a gap from a pause, or a renamed channel from a new one. Teams who start with the model usually end up back at this step, and it is the slow one.

Part 4

Keep the history before you need it

Platforms limit how far back their reporting interfaces will return data, so the history a model needs next year has to be collected this year. The cheapest decision in the whole exercise is to start keeping a client's daily spend and outcomes now, in a warehouse you control, even if a model is a year away. An agency that does this for every client can offer a model later without asking anyone to wait for the data.

Part 5

Where it sits beside attribution and tests

A mix model answers how to split a budget across channels, slowly, from history. Attribution answers which campaign inside a channel is doing better, quickly, with each platform's own bias. Incrementality tests answer whether one channel really caused anything, at the cost of holding some spend back.

The three are better together than apart. A model is most reliable when tests have been used to check the channels it is least sure about.

In practice

Where SightShark fits

SightShark does not build the model. It builds what the model reads: spend from 200+ sources and outcomes from each client's store or CRM, in one currency, on one grain, under one name per channel, accumulating daily in your own data warehouse. Manual uploads bring in the spend that has no API, so the history is complete rather than merely long.

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Questions

Questions people ask

How much data do you need for marketing mix modelling?

Enough history to cover several full seasonal cycles, which in practice means years of data rather than months, usually at weekly grain, with spend for every channel and an outcome series from the business's own system of record. Spend also has to have varied over that time, because a channel whose spend never changed gives the model nothing to learn from.

Can you run marketing mix modelling with only digital channels?

You can, but every channel left out still affects sales, and the model will credit its effect to whichever included channels happened to be spending at the same time. Offline spend, promotions and price changes belong in the data even when they have no reporting API, typically brought in from spreadsheets.

Do you need a data warehouse for marketing mix modelling?

You need somewhere that holds years of spend and outcomes on one grain, one currency and one set of channel names, which is what a warehouse is for. Platforms limit how far back they return data, so the history has to be collected and kept before the model is built, rather than exported at the moment it is needed.

Pricing

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