Improve Marketing Mix Model (MMM) Accuracy by Identifying these Effects

Summary

This study explores the identification of nonlinear and time-varying effects in marketing mix models (MMM). It highlights the challenges of conflation in model selection and proposes a framework for simulating and estimating these effects using Gaussian processes. The study emphasizes the importance of accurately identifying the underlying response to optimize marketing spending.

The research provides insights into the complexities of marketing effectiveness and offers practical solutions for improving model accuracy. By addressing the issue of conflation, the study aims to enhance the decision-making process in marketing strategies.