Marketing Mix Modeling (MMM) vs Multi-Touch Attribution (MTA)

The first thing I asked when I started learning about Marketing Mix Modeling (MMM) was how it differed from other Attribution models, and this turned out to be a popular question. In an increasingly complex marketing set up, whenever we come across a solution we are not using, we ask “how is it different?” “What information will it supply that I don’t already have?” So it’s no surprise that when pitching MMM, the first reply we get is often: “I already use Google Analytics Multi-Touch Attribution (MTA) or Appsflyer for measurement and attribution.”

Marketing Mix Modeling (MMM) and Multi-Touch Attribution (MTA) are two of the most common methodologies for marketing measurement. Both offer valuable insights, but they serve different purposes. In this post, we’ll break down the key differences between MMM and MTA, their unique strengths and limitations, and our recommendation on how to combine them. First things first, definitions.

What is MMM?

Marketing Mix Modeling is a statistical analysis technique that evaluates how various marketing channels and external factors (such as seasonality and economic trends) impact overall business performance. The use of bold is not accidental, MMM does not attribute at a user-level but rather works on aggregated data. Let’s take a look at how it works.

MMM does not attribute at a user-level but rather works on aggregated data. Let’s take a look at how it works.

How does MMM work?

Marketing Mix Modeling uses historical, aggregated data to analyze marketing effectiveness over time, typically looking at daily performance data from the last 2-3 years. There are different models such as Facebook’s Robyn, Google’s Lightweight, and other custom models like the one we use at Mutt Data. The models estimate the contribution of different media investments to help determine budget allocation across multiple channels, including offline media like TV and radio. This leads us to the advantages of using MMM.

Strengths of MMM:

• 👍 Provides a holistic view of marketing effectiveness across online and offline channels.
• 👍 As it works on aggregated data and not user-level data, it is less affected by privacy restrictions.
• 👍 As it evaluates investments over a long period of time, it allows marketers to calibrate other measurement methods such as: Platform-Based Attribution (Google Ads, Meta, etc.), Custom Multi-Touch Attribution Models, Incrementality or lift studies and/ or geo experiments. Its ability to calibrate other measurement methods ensures that short-term insights align with long-term business impact. Moreover, because MMM inherently measures incrementality, it helps optimize budgets across the entire business rather than within isolated channels, ultimately driving more effective and data-driven marketing decisions.

Limitations of MMM:

• 👎 MMM does requires large datasets and significant historical data. If there were significant product changes, or even highly-impactful external events it can affect the model's ability to efficiently predict performance.
• 👎 It cannot provide real-time insights for online marketing optimization. It’s usually run on a monthly or quarterly basis.
• 👎 You will find a lot of articles saying MMM is hard to implement. The truth is that the main challenge is having solid datasets. Depending on the state of your martech stack this may be a challenge to address before running MMM.

What is MTA?

Multi-Touch Attribution (MTA) is a digital-focused approach that assigns credit to individual touchpoints in a customer’s journey, determining their role in driving conversions.

How It Works

Multi-touch attribution tracks user interactions across digital channels (e.g., paid search, social media, display ads). Once again there are different models. How credit is assigned to each touchpoint will depend on the applied model. Linear models assign equal credit to all touchpoints in the customer journey, assuming every interaction contributes equally to a conversion. Time decay models assign more credit to touchpoints closer to the conversion event (so an ad click would have more credit than an ad view). Finally, data-driven models use machine learning to analyze historical conversion paths and dynamically assign credit based on actual impact. At Mutt Data we work with data-driven MTA. Whichever model you implement, MTA provides real-time data to optimize online campaigns which leads us to the advantages of adding it to your stack.

Learn more about how data-driven MTA works in our Mercado Libre Success Story

Strengths of MTA:

• 👍 MTA offers granular, straightforward insights into digital marketing performance. It’s easy to read and enables real-time optimization of ad spend for online campaigns.
• 👍 As it tracks the different touchpoints in the conversion journey, it helps marketers better understand the user journeys and conversion paths. For example, it helps answer questions like: “How many touch points does it typically take to generate a conversion?”, “Are there certain points where users are dropping off?” and so on.
• 👍 It requires a shorter minimum data period than MMM, enabling faster insights. While setup requires time and resources, once implemented, it runs with minimal effort, automatically tracking user interactions and optimizing campaigns in real-time. Data-driven MTA leverages historical data as well as marketing performance data, minimizing bias and resulting in a more accurate attribution.

Limitations of MTA

• 👎 Multi-Touch Attribution struggles to track offline channels. There are some workarounds such as using QRs or specific promo codes in offline campaigns, but it is not without its limitations.
• 👎 As other attribution methods, MTA is affected by the privacy regulations of the last few years (e.g., GDPR, iOS tracking restrictions).

TL;DR: Key Differences Between MMM and MTA

So… MMM vs MTA? Which Marketing Measurement Tool Should You Implement? 🤔

It depends on where you are in your martech journey. Your marketing goals and available data will determine which methodology to implement.

✔ Use MMM if: You need a holistic, long-term view of marketing effectiveness, including both online and offline channels.
✔ Use MTA if: You want to optimize digital campaigns in real time and track specific user interactions.

💡 Our recommendation? A hybrid approach. Many brands combine MMM for strategic planning and MTA for tactical execution, ensuring a well-rounded measurement framework.

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Wrapping Up

MMM and MTA provide different insights. We have helped many companies integrate both approaches for a more comprehensive understanding of marketing impact. We have found the best framework uses MMM to get a big-picture view of how your marketing is working and where to put your budget and MTA to fine-tune and optimize your digital campaigns in real time. We also recommend incorporating lift tests—as they help make sure both models are actually accurate. By combining insights from all three, you can build a solid measurement strategy that’s both reliable and scalable, making it easier to make smart, data-driven decisions.

It can sound overwhelming, but we’re happy to help! Every success story starts with good data, we recently helped Clip navigate it’s journey from Data-Scrambled to Data-Fueled. It’s what we love to do: help companies implement Machine Learning and data solutions that have real impact on their business.

👉 Get in touch to start your own journey to data-fueled solutions.