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Challenges and Opportunities in Media Mix Modeling

Mike Perry
research.google.com, 76 Ninth Avenue Google New York NY 10011 (2017)

Abstract

Advertisers have a need to understand the effectiveness of their media spend in driving sales in order to optimize budget allocations. Media mix models are a common and widely used approach for doing so. The paper outlines the various challenges such models encounter in consistently providing valid answers to the advertiser’s questions on media effectiveness. The paper also discusses opportunities for improvements in media mix models that can produce better inference.