The Evolution of Ads Marketing Mix Modeling (MMM): From Regression Models to AI-Powered Planning for SMBs

Marketing Mix Modeling (MMM) has come a long way since its birth in the 1950s. While models were dependent on simple regression models at the beginning, MMM evolved first with the appearance of digital marketing, then media channel fragmentation and signal loss because of continually changing privacy and regulatory environments. This paper speaks of MMM booming back due to the rising attribution challenges and, therefore, calls for a more holistic view regarding the customer journey. It outlines how MMM provides effective marketing planning, optimized budget allocations, scenario planning, in-flight optimizations, and long-term strategic insights. The study further looks into the role artificial intelligence plays in the automation of MMM processes, making it accessible and efficient for small- and medium-sized businesses. The paper elaborates on the opportunities that open up with artificial intelligence for SMBs to use MMM, as well as the challenges and considerations that result.