Marketing mix modeling (MMM) is becoming more actionable, shifting from a retrospective measurement tool to a more dynamic input into day-to-day marketing decisions.

• Some 43% of marketers say it has helped them build a more effective media mix, according to a recent report from Harvard Business Review and Google.
• Nearly as many (41%) report stronger data-driven decision-making, and 40% have seen improvements in sales or conversions.

But realizing the full value of MMM requires making it more actionable across the business. That means closing the gap between insight and execution, an area where many organizations are still making progress as they work through challenges around integration, data quality, and internal alignment.

Here’s how marketers are approaching MMM today, where the biggest friction points remain, and how their strategies are evolving to make it more actionable.

1. Most organizations are still finding their footing with MMM

Just 22% of marketers say their organization is very effective at using MMM to generate insights and translate them into timely, meaningful action. These companies are classified as "leaders," according to the report.

• Another 36% fall into the "follower" category, with some ability to generate insights or act on them.
• The remaining 42% are "laggards," still struggling across both fronts.

“Measurement sophistication is growing, but the education gap is the real issue,” said Dan Larkman, CEO and founder of Keynes Digital. “A year ago, very few advertisers were running MMM. Today, more than a third are, but many still expect it to behave like MTA or last-click. That disconnect creates friction.”

2. MMM works best as part of a broader measurement approach

The real value of MMM becomes clearer when it’s used alongside other tools.

• Marketers who take this approach report higher confidence in decision-making (68%), more accurate measurement of marketing impact (67%), and a stronger understanding of the customer journey (65%), per the report.
• There’s also a clear maturity gap. Forty percent of "leaders" have integrated MMM with other measurement tools, compared with 28% of "followers" and 15% of "laggards."

“[MMM takes] into account your paid media, your owned media, and all the other factors that drive the business, whether that’s pricing or promotions,” said Dan Kelley, group manager of marketing science at Snap Inc., speaking at last year’s Advertising Week New York event.

He recommends pairing MMM with sales lift measurement, since both are designed to capture total sales outcomes across different drivers.

3. Data quality, internal processes, and access continue to hold teams back

Data quality sits at the center of many MMM challenges. It’s the top technical issue, cited by 47% of marketers, and also the leading area of investment for improving results, according to the Harvard Business Review report.

CTV is a good example of how much inputs matter.

“CTV performs incredibly well in MMM when the inputs are correct,” Larkman said. “Brands need to plan for that upfront rather than trying to retrofit it later.”

Operationally, slow internal processes are another sticking point. They rank as the top challenge for 46% of marketers, but only 34% of organizations are actively working to improve them, per the report.

Access to data is also uneven. While 38% of "leaders" are improving access to granular or real-time data, that drops to 24% of "followers" and 15% of "laggards." Overall, 72% of marketers say MMM insights are still limited to select teams.

4. Organizations are actively evolving their MMM strategies

Despite these challenges, organizations are making steady progress, found the report.

• Many are focused on expanding access to MMM insights through dashboards and reporting tools (39%), building internal cultures that support MMM-driven decision-making (36%), and growing in-house expertise (35%).
• More than half of marketers (54%) say they update or refine their MMM models at least quarterly. That cadence is more common among "leaders" (65%) and "followers" (63%) than "laggards" (41%).

Kellanova is one example of how this evolution is playing out in practice.

“We’re trying to frame up additional data sets around MMM,” said TJ Hanel, director of retail media network strategy at Kellanova, at an EMARKETER summit last December. The company is layering in sales lift data and insights from retail partners to get a more detailed view of performance across tactics.

Looking ahead, marketers say the biggest catalyst for updating MMM design will be emerging technologies and new data sources, cited by 52%. Close behind are changes in marketing conditions (51%) and evolving consumer behavior (50%).

This was originally featured in the EMARKETER Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.