Marketing Mix Modeling

It’s actually not super difficult… if you have good data. The first step is to understand if you have marketing spend by channel for each channel at a weekly level. Check with the marketing leads.

To understand the cost of acquisition, you need to predict how many new users joined by spend. Run a regression model, with log independent variables, spend and hold for seasonality.

X Variables

Paid Search Spend log

Organic Search Spend log

Social Media Spend log

Offline – TV Spend log

Month or Quarter binary

Perhaps t for time trend (month X) continuous

Y:

N. of New Users

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