There is no one right way to analyze your marketing. At Rockerbox, we believe you should choose the right methodology for the specific questions you need to answer.
When it comes to answering high-level questions of how much money you should allocate to each marketing channel for the best returns, Marketing Mix Modeling is the way to go. In our Forecast product, we’re making this statistical analysis more accessible than ever.
Forecast is one of the new products in our Analysis line of offerings, which also includes Journey and Optimize, and is targeted at helping marketers unlock insights, optimize marketing, and more. Learn about the Analysis Product Line and the complementary Data Product Line in our launch blog!
Unveiling Forecast: A Snapshot
Forecast was built to help marketing leaders and finance professionals gain a greater understanding of the way each marketing channel is actually affecting revenue in order to help them make more informed decisions about where to allocate budget.
Marketing Mix Modeling as a methodology does just that. In this new product, we analyze our users' own data, applying statistical regression techniques to pinpoint how much effect different spend decisions had on revenue in order to make predictions about how much future spend changes could affect revenue.
Forecast takes what has often been a time-consuming process that yielded static results and instead delivers a user-friendly, interactive interface that marketers can use to make decisions about channel spend.
Some of the features in this product include:
- Channel Overview: Explore your top channels one by one and examine the relationship between spend and revenue. A ROAS slider allows you to play with varying ROAS values to customize your results.
- Marketing Performance: Offers a high level view of ROI where you can see both the modeled revenue and spend contributions for each channel.
- Channel Adjustments + Media Plan: Identify high ROAS channels to optimize then build a spend plan based on our MMM suggestions. Test one channel at a time to truly isolate impact.
The Power of Marketing Mix Modeling (MMM)
Marketing Mix Modeling originally came into popularity in the mid-1900s before the advent of digital advertising as a way to measure the lift caused by various marketing channels like print magazines and TV. With the rise of digital advertising, granular information became available on nearly every activity that potential customers were taking online, which powered the popularity of MTA.
However, while MTA excels at shedding light on the buyer journey and the various digital touchpoints that affect it, it isn’t suited for the kinds of macro level budget insights that MMM can provide.
MMM is still used as a statistical method, but other solutions can be prohibitively expensive, take time, and only provide a point-in-time summary of information. Rockerbox Forecast takes the power of the MMM methodology and packages it in a way that more businesses of all sizes can use and afford.
Solving Business Problems with Forecast
Rockerbox’s new products are use-case focused, meaning we analyzed how our customers used and found success with our platform and curated the right features and views to satisfy those specific needs.
For Forecast, we wanted to solve a few key problems, including:
- Media Plan Optimization with MMM — Creating an effective media plan requires evaluating combinations of multiple different channels for the best results. Forecast can help marketing organizations speed up this process and add more accuracy to it by offering the ability to create multiple different spend allocations and evaluate multiple different potential revenue scenarios.
- Seasonal Campaign Strategy — Traditional analytics tools only provide a limited view of seasonal performance and don't provide insights for future planning. Using Forecast, organizations can leverage MMM to analyze their previous seasonal campaign data and understand its performance. MMM takes into account external factors such as seasonal trends, competitors' activities, and macroeconomic factors, providing a holistic view of the campaign's performance.
- Annual/Regular Budget Planning — Insights from MMM can empower organizations to make strategic decisions on where to allocate their marketing budget for the next fiscal year or period. For example, they might decide to reduce spend on a channel that's nearing saturation, invest more in underutilized but high-performing channels, or adjust their campaign timings to account for seasonality.
All of these use cases ultimately help marketers and finance professionals make better use of their budget.
How You’ll Use Forecast on a Regular Basis
Rockerbox Forecast data updates monthly with new revenue and spend information and is best used to slowly evaluate your strategy channel by channel, focusing on the high ROAS channels as the first place to start with budget optimizations.
Forecast: Spend/Revenue Predictions Based on Your Own Historical Performance Data
With Rockerbox Forecast, you can get clarity on how to best allocate your budget at a high-level for the best results. It’s not guesswork because it’s based on real data from your organization, and our platform walks you through making gradual adjustments to your spending plan for the best results.
What are you waiting for? Explore the platform that helps you make more data-driven decisions today.