Marketscience Launches Mix Modelling Approach

UK-based advanced analytics firm Marketscience has launched a marketing mix modelling approach called BaseDynamics, to quantify the short and long-term market effects of campaigns and strategies.

Founded in 2012 by former Marketshare SVP Peter Cain (pictured), Marketscience specialises in econometric modelling, statistical analysis and offering bespoke advice on marketing investments. According to Cain, modern marketing mix models fail to address the selection bias of last-touch acquisition marketing channels, and do not provide proper representation of long-term brand building. Cain says that failure to deal with these issues leads to continued mis-estimation of marketing effectiveness and lack of credibility with finance departments.

His firm's new BaseDynamics approach is based on network models of short-term sales growth and long-term brand building effects, with control for the simultaneity bias inherent in last-touch performance media and analysis with dynamic hierarchical Bayesian estimation. According to the firm, this approach provides a more realistic measurement of marketing's total impact on sales, with insights for product positioning and creative development. BaseDynamics has now been validated by peer-reviewed published research by Cain in the International Journal of Research in Marketing (IJRM).

David Dixon, Managing Partner at Marketscience, says of the launch: 'BaseDynamics has already been successfully deployed across many of our clients where we have seen differences in optimal budget allocations of anything from 20% to 60% and more. The academic validation through our research, noted as an 'excellent and important contribution' by IJRM Editor P.K.Kannan, only serves to cement the credibility of our approach'.

Web site: www.market.science .