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MARKETING-MIX-MODELING5 MIN READ

From ROI table to budget scenario

Translate MMM ROI outputs into constrained, scenario-based budget recommendations.

Budget planning The model's ideal move collides with contracts, inventory, and creative reality. A recommendation that cannot be executed will be ignored, even if the math is elegant. Optimization discipline Constrain before you recommend Budget scenarios turn model outputs into choices leaders can actually make. Use response curves and marginal ROI inside operational constraints, then compare scenarios rather than pretending there is one unconstrained answer. Constraints Step 1 Retail media has inventory caps and TV has already been bought. What do you do before accepting the optimizer output? Scenarios Step 2 The constrained optimizer still allows several plausible reallocations. What…

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