Using Attention Metrics for Budget Allocation in Marketing Mix Modeling (MMM).
Attention Metrics can greatly enhance your budget allocation exercise
In our product ArymaEdge, the most used features are Scenario Planning and Budget Allocation.
Marketers are always looking for ways to optimize their budget allocation across marketing channels.ย
At Aryma Labs, we have been experimenting with using attention metrics as external information to do budget allocation.
Here is our approach:
๐๐ญ๐ญ๐๐ง๐ญ๐ข๐จ๐ง ๐ฆ๐๐ญ๐ซ๐ข๐๐ฌ ๐๐ฌ ๐๐ฑ๐ญ๐๐ซ๐ง๐๐ฅ ๐ฌ๐จ๐ฎ๐ซ๐๐ ๐จ๐ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง
Our approach involves allocating more spends to a campaign that has a higher attention metric relative to others.
While attention metrics cannot be used within the MMM model due to their sparse nature, they can be leveraged as external information for budget allocation.
We are currently running three experiments:
1) Budget Allocation powered by MMM alone.
2) Budget Allocation powered by MMM + Attention Metrics.
3) Budget Allocation powered by Attention Metrics alone.
For the second and third experiments, we have internally coded logical rules to increase spend on a campaign like 'if its attention metric score is between 80-100%, then increase spend on campaign A by 5%'.
Although we are still in the experimental stage, we find merit in using attention metrics to perform budget allocation.
In addition to validating MMM faster, attention metrics could be useful in budget allocation exercise of MMM.
Thanks for reading.
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