Do You Need MMM?

The first question to ask yourself is whether you actually need marketing analytics. Most advertisers would instinctively say yes. But the truth is, some very small businesses can get by without any formal measurement. A local shop, for example, might do just fine making intuitive budget decisions without sophisticated tracking.

However, as budgets grow, so does the need for measurement. Larger advertisers must optimize their spending, monitor Return on Ad Spend (RoAS), and identify potential inefficiencies. More budget means more responsibility—and potentially bigger financial leaks.

If you're spending a few hundred thousand euros or dollars on a single platform, you might be fine relying on its built-in attribution. But what if you're running large-scale, multi-channel campaigns with online and offline components, spending millions annually? How do you ensure you're not simply throwing money away? Is Marketing Mix Modeling the answer?

When Does MMM Make Sense?

There’s no single answer, but one thing is clear: the bigger your spend, the more crucial it is to understand how your marketing efforts are working. However, budget size alone isn’t the only factor. 

Other considerations include the cost and complexity of MMM, market maturity, number of marketing channels, conversion volume, and your overall business model.

How MMM Has Changed

Historically, MMM was reserved for massive brands like P&G, Coca-Cola, and major retailers—companies running nationwide campaigns across TV, in-store promotions, and digital ads. For them, MMM was essential to determine what was actually driving sales. Industries like pharmaceuticals, quick-service restaurants, and automotive brands also relied on MMM to optimize their marketing strategies.

The primary barriers to wider adoption were cost, complexity, and the sheer amount of data required. MMM was often the only way to measure baseline and incremental sales effectively.

That has changed. Modern MMM is more affordable, thanks to open-source tools, cloud computing, and SaaS solutions. These advancements have significantly improved the cost-benefit ratio, making MMM a viable option for a broader range of businesses.

Key Questions to Ask Before Adopting MMM

1. What Is Your Marketing Spend?

• 0-500K – High risk that MMM won't deliver accurate models. In most cases, the benefits won’t justify the effort.
• 500K-1M – MMM starts to make sense if other conditions (like multiple channels and conversion volume) are met.
• 1M+ – You need more precise measurement beyond simple attribution. However, high spend alone doesn’t mean MMM is necessary.

2. How Many Channels Are You Using?

• Single channel (e.g., only Facebook or only Google Ads) – Platform attribution may be sufficient, but for high spends, MMM can help measure channel saturation and baseline sales.
• Multiple online channels (e.g., Google and Facebook Ads) – If your spend is high enough, MMM can offer valuable insights.
• Mix of online and offline channels – MMM is essential to understanding cross-channel impact and overall marketing efficiency.

3. How Many Conversions Do You Have?

• Low volume (fewer than 5,000 conversions annually) – MMM may struggle to produce reliable insights due to insufficient data.
• High volume – With a large number of conversions, MMM can generate clear signals, even with a moderate budget.

4. How Much of Your Sales Are Driven by Marketing?

• Well-established brands in saturated markets – MMM can still help measure marketing impact, but actionable insights may be limited.
• Businesses with a high percentage of baseline sales – MMM can optimize the portion of sales influenced by marketing, but its impact will be more focused.

5. Are you heavily investing in top-of-the-funnel marketing?

• Traditional attribution struggles to measure upper-funnel activities effectively. If you have a strong organic presence or invest in channels that are difficult to track, MMM might be the right solution for you—even with a smaller budget.

Conclusion

If you check multiple boxes above, MMM is likely a good fit for your business. While it’s not for everyone, modern advancements have made it more accessible than ever. The key is balancing the cost, complexity, and potential gains to determine whether it’s the right solution for you.