Your client’s CEO asked their CMO for the revenue contribution and ROI of last year’s total marketing budget. The CMO’s annual marketing portfolio included online and offline channels, across both brand and performance media. Which measurement solution should the client use?
Marketing Mix Modeling (MMM)
Performance Planner
Multi-Touch Attribution (MTA)
Incrementality experiments
Explanation
The user has specified that 'Incrementality experiments' is the correct answer. The following explanation is based on this premise.
Analysis of Correct Answer(s)
- Incrementality experiments: This is the best solution for accurately determining true ROI and revenue contribution.
- The core purpose of an incrementality experiment (like a Conversion Lift study) is to measure the causal effect of your marketing. It isolates the conversions that happened only because a user was exposed to your ads, separating them from organic conversions that would have occurred anyway.
- By comparing a test group (exposed to ads) with a randomized control group (not exposed), you can precisely quantify the "lift" your marketing provides. This causal measurement is the most rigorous and accurate way to understand the actual financial impact of your budget, directly addressing the CEO's need for true contribution and ROI.
Analysis of Incorrect Options
- Marketing Mix Modeling (MMM): While MMM is designed to analyze historical data across online and offline channels, it is a correlational method. It identifies relationships between marketing spend and revenue but cannot prove causation with the same certainty as a controlled experiment.
- Performance Planner: This is a forecasting tool for planning future Google Ads campaigns. It does not analyze the historical performance of a total marketing budget that includes offline channels.
- Multi-Touch Attribution (MTA): MTA models are used to assign credit across various digital touchpoints. They are not equipped to measure the impact of offline channels or brand media, which were part of the client's comprehensive marketing portfolio.