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S9 E6: The Cheesecake Factory Menu of DTC with Cody Plofker
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Understanding Attribution and Media Mix Modeling
Attribution determines the contributions of various ad channels to revenue, primarily through click-based metrics, but occasionally using view-based measures. Media Mix Modeling (MMM) employs advanced regression analysis to understand the relationships between spending on different channels and overall revenue, typically used by larger companies and often conducted quarterly by firms like Nielsen. Although MMM provides valuable insights for retail, it can be slow and costly with limitations in its applicability to digitally native businesses. Incrementality assesses the true revenue impact of marketing activities, moving beyond simple attribution by analyzing how changes in marketing spend influence revenue rather than just reporting earned revenue from each channel.
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