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MARKETING-MIX-MODELING5 MIN READ

Start with the budget decision

Define the decision question an MMM must answer before choosing data, granularity, or model complexity.

The move: turn the model request into a budget decision before you touch the data. Name the decision horizon MMM works best when the time frame is explicit. A quarterly budget shift, annual planning reset, market expansion, or channel defense requires different data windows and different tolerance for uncertainty. Name the controllable levers A model can estimate many effects, but the decision only changes levers the business can actually move. If affiliate contracts are locked and TV is already bought, they may be context, not live levers. Name the output needed Stakeholders often ask for ROI, but budget decisions usually…

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