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How does Core MMM handle a pair of distinct KPIs?

How does Core MMM handle a pair of distinct KPIs?

In an increasingly competitive market, measuring which levers truly work becomes essential.

Through the implementation of Core MMM—our proprietary Marketing Mix Modeling system—we guided one of the leading Italian B2C marketplaces in strategic planning decisions and brand value protection.

By integrating media data, competitive data, and business indicators, the model measured the contribution of paid activities, the weight of competitive pressure, and the evolution of the baseline, helping to improve ROAS and support medium-term growth.

The Challenge

The marketplace is facing slowing traffic, contracting leads, growing competition, and less predictable tactical channels.

With more selective TV budgets, there was a need to go beyond platform metrics to understand which activities were truly contributing to growth and which were absorbing resources without generating adequate returns.

Our Distinctive Approach

With Core MMM, we integrated media data, business KPIs, and competitive signals across the entire funnel—from visits to leads—to analyze performance, competition, and market dynamics together. The model clarified where to invest, what to reduce, and which activities to continue supporting or optimizing.

The value of experience, even in the AI era.

AI helps identify patterns in data. The analyst’s experience is needed to understand which of those signals are truly solid and useful for the business before transforming them into operational insights.

Key Results

MMM and TV analysis have made KPIs more useful for evaluating efficiency, budget allocation, and priorities for future planning.

Media mix efficiency: the cost per incremental result improved by 23%, with positive contributions from TV (+18% YoY), Video (+20%), and SEM, which was confirmed as the most efficient channel in the mix.

Clearer competitive context: the model isolated the impact of competition, distinguishing it from the effect of media activities.

More defensible planning: TV reallocation across networks and dayparts reduced the CPG and allowed for the definition of more effective GRP thresholds to guide planning.

In summary, the analysis clarified which investments generated value and which required a review.

Operational Recommendations

Targeted insights emerge from the MMM to understand where the budget works best and where it can be reallocated:

For the Brand Manager: concentrate the budget on channels with the highest incremental contribution, such as TV, Video/YT, and SEM, while reducing less effective conversion activations.

For the CMO: reallocate the mix toward more efficient channels, protecting activities that support growth and brand equity, and concentrating TV investments on the highest-performing channels and most qualified audiences.

For the CFO: distinguish what depends on marketing from what derives from the baseline or competitive pressure, to invest resources where the marginal return is higher.

Do you want to understand which channels truly contribute to growth?

We help you analyze media, business, and market data together to identify where your budget works best.

Let’s talk: concrete insights can emerge from your data to guide your next choices.

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Date:

February 6, 2023

Category:

Core

Tags:

Business Case
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