What size company should use MMM?
Technically any size company can build an MMM: we’ve seen ecommerce startups ~$10k in monthly spend get value from spending an afternoon in Excel doing simple linear regressions for directional insights.
However to do MMM well, there’s a hurdle that means it’s probably only worth productionizing it at $100k+ in ad spend per month, across 4+ channels. That’s when an additional percentage point in accuracy can be worth low thousands in revenue, which comfortably justifies the cost of investing in MMM. |