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The marketing landscape is undergoing a significant transformation due to factors such as automation and AI, increased personalization, media fragmentation, and the growth of social commerce. As consumers are presented with an expanding array of choices, their preferences and buying behaviors are shifting dramatically. They demand more authenticity and relevance in marketing efforts, with a need for brands to innovate and evolve rapidly. With these significant changes in the marketing landscape, the marketing measurement landscape too is set to continue evolving and growing in importance.
Amidst growing privacy regulations, increased marketing complexity and widespread focus on driving higher ROI, the role of Marketing Mix Modelling (MMM) is likely to grow both in importance and value. According to a recent EMARKETER study in July 2024, more than 61% of marketeers said they were looking to augment and improve their measurement strategies with better and faster MMM.
61.4%
52.8%
44.3%
Traditionally, the benefits of Marketing Mix Modelling have focused on optimizing media spend. However, going forward, MMM will be leveraged as a broader enterprise-wide solution for optimizing business levers across the organization such as supply chain, distribution and finance. By leveraging MMM to evaluate commercial impacts holistically, organizations can unlock new efficiencies and synergies. As brands adopt this approach, MMM will become a more collaborative tool to increase business value across the organization.
MMM is poised to become an enterprisewide solution for optimizing business levers across the organization such as supply chain, distribution and finance.
With rising customer acquisition costs driven by ever-greater choices and fierce competition, brands are under pressure to secure long-term value from their customers. The shift toward fundamentals, such as customer loyalty and LTV, reflects this need.
Measurement models will increasingly prioritize considering long-term effects as well as measuring customer loyalty metrics by leveraging data from loyalty programs. Brands employing robust loyalty metrics have reported up to 25% higher profitability compared to their peers, underscoring the importance of these insights. Marketing teams and measurement analysts will work closely to refine LTV predictions, integrating them into broader strategic planning.
Historically, MMM insights were retrospective, often conducted biannually or annually. However, today’s fast-paced market demands real-time decision-making. Advances in AI and automation have made always-on MMM feasible, allowing for weekly or even daily updates.
Brands using always-on MMM can make not just strategic decision but also tactical adjustments, such as modifying campaigns or tweaking product pricing in response to immediate trends. It is estimated that brands can achieve as much as a 10% increase in ROI by leveraging real-time modelling to optimize advertising spend dynamically.
Always-on MMM can guide not just strategic decisions but also dayto-day tactical campaign adjustment or pricing and promotion decisions to maximize ROI.
Retail media–encompassing platforms like Amazon, Walmart, Lazada, Shopee, Foodpanda, Grab and many others–is experiencing explosive growth. US retail media ad spend touched $40.8 billion in 2022 and is expected to surpass $61 billion in 2024, while Asia-Pacific retail media revenue is expected to grow at a CAGR of 9.4% from 2025 to 2030 to reach $7.3 billion by 2030.
While the contextual nature of retail media—targeting shoppers with high purchase intent—offers substantial ROI, its impact remains undermeasured. Retail media networks capture a lot of valuable data, but this data is currently in silos and not available to brands and marketers as a “big picture.” Integrating retail media data with MMM frameworks will become crucial in 2025.
Retail media offers substantial ROI, but its impact is under measured. Integrating retail media data into MMM frameworks will become crucial.
Influencer marketing continues to grow, with global spending projected to exceed $22 billion in 2025. Micro-influencers, often targeting local audiences, are particularly effective, achieving engagement rates up to 60% higher than macro-influencers. MMM will increasingly focus on measuring the hyperlocal effects of these campaigns.
Purpose-driven marketing, which emphasizes values like sustainability, diversity and inclusivity, has become a cornerstone of brand differentiation. Spending on such campaigns has surged, with major brands investing in initiatives addressing social and environmental issues, and integrating these values across their operations.
There will be an increasing emphasis on metrics like sustainability and diversity and the need for MMM measurement frameworks to incorporate such metrics. In 2025, MMM will incorporate emerging new metrics—such as Carbon Footprint Reduction, Energy Efficiency, Workplace Diversity, Supply Chain Transparency and Social Return on Investment (SROI)—to measure the success of these campaigns comprehensively.
As the marketplace and consumer preferences continue to evolve, marketing measurement must keep pace to guide decision-making effectively. In 2025, advances in technology, data analytics, and automation will redefine approaches to measurement.
MMM will increasingly incorporate emerging new metrics around sustainability, diversity, inclusivity and transparency to measure the impact of purposedriven marketing.
Analytic Edge, a part of C5i, is a global analytics company that leverages technology and advanced analytics to help companies make data-based marketing decisions. The company’s flagship platform Analytic Edge Qube offers a suite of marketing analytics solutions with a Software as a Service (SaaS) model. The solutions include DemandDriversTM for always-on Marketing Mix Modelling (MMM), SynTestTM for AI powered Test and Learn, PriceSenseTM for pricing and promotion analytics, and PowerViewTM for analytics visualization. Analytic Edge works with clients across industry verticals such as e-commerce, mobile apps, gaming, consumer packaged goods, retail, automotive and many others.
