ChatGPT: Marketing Mix Modeling (MMM) is a statistical approach used to quantify how different marketing activities—such as advertising, promotions, pricing, distribution, and external factors like seasonality—contribute to sales or other key business outcomes. By analyzing historical data, MMM estimates the incremental impact of each channel, helping companies understand what is truly driving revenue versus what would have happened anyway. The result is a model that decomposes performance into component parts, clarifies ROI for each investment, and allows marketers to simulate how shifting spend across the mix will influence future results.

Organizations use MMM to optimize budgets and make more confident allocation decisions. It enables scenario planning (e.g., What if we cut TV 10% and increase paid search 20%?) and can reveal diminishing returns, long-term brand effects, and channel synergies that are otherwise difficult to observe. As privacy regulations reduce access to user-level data and attribution tracking loses fidelity, MMM has re-emerged as a strategic measurement foundation, especially when combined with experiments and digital attribution to form a full-funnel measurement system.