Should Branded Keyword Paid Search Spend be included in Marketing Mix Models (MMM)?
Yes, Branded Keyword Paid Search should be included in MMM
LinkedIn is a great place to learn and share knowledge. Steve Kozel on LinkedIn posed a series of questions to MMM experts. The main question among them was “Should Branded Keyword Paid Search Spend be Included in MMM?”
Firstly, I think this is a great question and many MMM vendors face this conundrum.
I believe MMM is a marketing effectiveness gauging exercise. And by definition Marketing effectiveness gauging has to be holistic.
Therefore branded keyword paid search spends should be included in the model.
Apart from the modeling point of view, if one thinks strategically, branded keyword paid search can benefit the brand tremendously, but it could also have a spill over effect and positively affect rival brands.
If your brand is the leading player, continuous brand keyword paid search spends will also improve the category as a whole.
Thus making it easier for other brands to come in !!
Question: Are you better off running an isolated incrementality test to gauge effects?
It depends. We do a lot of experimentation alongside MMM. But the big question is what incrementality are we looking for ?
If it is sales, it can take quite sometime for the effect of branded keyword paid search ads to reflect on sales.
Therefore we are experimenting with quick feedback loop metrics like Share of search and attention metrics. (Link to relevant articles in resources section)
Question: Should you include organic branded keyword search volume as a measure of existing intent?
Yes, organic branded keyword search volume could be used.
In fact the end game of doing branded keyword paid search ads is to eventually shore up the organic branded keyword search volume.
The end game of doing branded keyword paid search ads is to eventually shore up the organic branded keyword search volume.
Resources:
How MMM can validate Attention Metrics: https://open.substack.com/pub/arymalabs/p/how-mmm-can-validate-attention-metrics?r=2p7455&utm_campaign=post&utm_medium=web
Using Attention Metrics for Budget Allocation in MMM: https://open.substack.com/pub/arymalabs/p/using-attention-metrics-for-budget?r=2p7455&utm_campaign=post&utm_medium=web
Reduce cost of validating MMM through Share of Search and Attention Metrics:https://open.substack.com/pub/arymalabs/p/reduce-cost-of-validating-marketing?r=2p7455&utm_campaign=post&utm_medium=web
Share of search + Difference in Difference = Faster Validation of MMM
https://open.substack.com/pub/arymalabs/p/share-of-search-difference-in-difference?r=2p7455&utm_campaign=post&utm_medium=web
Do you really know who your competition is : https://open.substack.com/pub/arymalabs/p/do-you-really-know-who-your-competition?r=2p7455&utm_campaign=post&utm_medium=web
Thanks for reading.
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