Research

Marketing Mix & Incrementality Study

Bayesian media mix modelling validated against geo holdout experiments.

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Marketing Mix & Incrementality Study preview
PythonPyMCRGeo experiments

Business problem

Marketing could not defend its budget split because last-click attribution credited channels that were merely closing demand.

Dataset

3 years of weekly spend, impressions and revenue across 6 channels and 42 geographies.

Methodology

  • Modelled adstock and saturation curves per channel.
  • Fitted a hierarchical Bayesian regression with priors from prior tests.
  • Validated posterior ROI against geo-holdout results.

Key findings

  • Paid search was over-credited by roughly 30%.
  • Two upper-funnel channels showed genuine incremental lift.

Recommendations

  • Move 18% of spend to the incremental channels at flat budget.
  • Run a rolling geo-holdout calendar to keep priors fresh.