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Guide to MMM Model Settings
Guide to MMM Model Settings

Walk through the MMM model settings and how to optimize them for upcoming campaigns.

K
Written by Kevin Wolf
Updated this week


1. Accessing the MMM Model Settings 0:00

  • Navigate to the MMM results page and click on 'model settings'.

  • Alternatively, access it through the admin panel under 'settings' at the bottom.


2. Understanding the Model Update Frequency 0:20

  • The MMM model updates weekly, specifically every Sunday night or Monday morning, based on your time zone.


3. Setting Business Goals 0:38

  • Define what the model is optimizing for:

    • Revenue

    • Number of Customers

    • Profit

    • Number of Subscriptions

  • Decide whether to focus on:

    • New customers

    • All customers


4. Defining Budget Constraints 2:48

  • Set the budget for optimization:

    • Default is the previous week's budget.

    • Adjust based on upcoming campaigns or changes in spending.


5. Allocating Budget Across Channels 4:39

  • Specify how the budget is divided among channels (e.g., Google, Meta, TikTok).

  • Understand that the model optimizes for revenue and ROAS (Return on Ad Spend).


6. Adjusting Flexibility of Spend Allocation 6:01

  • Set limits on how much the model can adjust spending for each channel:

    • Default settings allow for 50% decrease and 25% increase.

  • Customize these limits based on your comfort level.


7. Utilizing Advanced Settings 6:49

  • Create specific constraints for certain channels (e.g., setting Google search to not increase at all).


8. Inputting Additional Variables 7:37

  • Include factors that may affect revenue:

    • Number of emails sent (Klaviyo).

    • Average discount percentage.

  • Optionally exclude these variables from the model.


9. Considering Seasonality and Halo Effects 9:11

  • Understand that seasonality and halo effects between channels are part of the model but not configurable.


10. Managing Amazon Spend 9:37

  • Decide whether to include or exclude Amazon spend and revenue in the model.


11. Saving Changes and Running the Model 10:02

  • Choose to replace the existing model for the current week or pre-populate settings for the next week.

  • Save the configuration and view the dashboard.


12. Model Refresh Timing 10:26

  • Note that it takes about 30 minutes to an hour for the model to refresh after running.

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