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The factors influencing sales in the digital marketplace represent an intricate tapestry extending far beyond traditional advertising. In a multifaceted environment, where any event, development and trend can affect sales, advertisers must employ a sophisticated approach to understand and attribute these myriad influences.
At the heart of this challenge lies the Marketing Mix Model (MMM), a powerful tool bringing clarity to the often chaotic and interconnected world of sales drivers.
In this blog we will discuss the factors driving sales and how advertisers can use MMM tools to quantify the elements likely to shape consumer behaviour and affect sales.
What are the common factors influencing the purchase journey?
While advertising is a crucial sales driver, it’s far from the only one. The idea that a consumer will spontaneously download an app and make a sale is increasingly obsolete. Such an oversimplified view fails to acknowledge the complex web of elements that work in tandem with advertising to influence consumer behaviour. These factors often work subtly, shaping consumer mood and behaviour in ways that are not immediately apparent.
Which of these factors do sales and advertising teams most often overlook?
With mobile advertising, the direct sequencing of purchase-journey steps — having a consumer click on a mobile banner, download an app and then make a purchase — is few and far between. Despite this, the smartphone is a hub of activity. Most consumers have dozens of apps and use them regularly for tasks ranging from mundane purchases to planning entire holidays. This leads to an intriguing question: what influenced them to download these apps? The answer lies in a combination of advertising influences and what we term ‘external events.’
How can advertisers use these external events to their advantage in their marketing campaigns?
The external events encompass a range of occurrences, from weather changes to major public events, each leaving an indelible mark on consumer decisions. It’s often a synergy of advertising precisely timed with an external event that nudges one toward downloading an app or making a purchase. This synergy is subtle yet powerful, highlighting the need for a nuanced understanding of sales influences.
MMM (Marketing Mix Model) emerges as a beacon in this complex landscape. It doesn’t just quantify the direct impact of advertising; it delves deeper, unravelling the intertwined influences of external events, seasonal variations and more. By harnessing this tool, marketers can gain a comprehensive view of what truly drives sales in the digital age — a view that acknowledges the diverse and interconnected nature of consumer behaviour.
The journey to understanding what influences sales in the digital world is intricate and multi-dimensional. It’s a journey that requires us to look beyond the immediate and obvious to consider the subtle interplay of factors that shape consumer decisions. Marketing mix model is then an essential ally, guiding us through the nuanced landscape of factors affecting digital sales.
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