Marketing Mix Models (MMM) and NeuroRadar: Measuring the Impact of Facebook Campaigns

If your SaaS business relies heavily on Facebook ads to grow, it's natural to wonder: How can I measure exactly which campaign is generating the greatest impact?

How to identify the impact of each campaign on Facebook

MMM allows you to isolate incremental revenue attributed exclusively to Facebook ads in specific periods. This means that if you run separate campaigns on specific dates, you can:

• Determine the exact incremental impact each campaign had on revenue.

• Relate results to specific campaigns , ensuring decisions are based on solid data.

• Avoid attribution bias , providing more robust analysis than Facebook's last-interaction models.

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Debunking the myth that MMM can't measure digital campaigns

One of the most common myths about MMM is that it's not suitable for measuring digital campaigns, especially on platforms like Facebook. This isn't true. Although MMM analyzes aggregated data rather than user-level data, it's still a highly effective tool for measuring campaign performance. It allows you to break down the effects of each channel and quantify the impact of specific campaigns without relying on click-based attribution or cookies, making it an ideal solution in a world of increasing privacy restrictions.

How to apply this in your strategy

Strategic segmentation

• Divide your Facebook spending by key objectives (prospecting, retargeting, lead generation).

• Example: A SaaS company could run a campaign focused on acquiring new customers with ads targeting cold audiences, while simultaneously running another retargeting campaign to reactivate users who visited their page but didn't complete the conversion.

• How to identify it in the results: By observing the response curves for different campaigns, you can notice differences in the elasticity of each segment. If the curve shows a higher marginal response in retargeting compared to prospecting, it indicates that reactivated audiences generate better conversions with less additional investment.

Precise attribution by dates

• Evaluate how specific campaigns contribute to revenue growth over specific periods.

• For example, if you ran a special promotion for a month, the model can analyze whether the increase in conversions actually came from that Facebook campaign or if there were other external factors involved.

• How to identify it in the results: By comparing campaign activation periods with decomposed revenue curves, it's possible to see if there are sales spikes aligned with Facebook investment or if there are other external factors that may have influenced it.

Budget optimization

• Adjust your investment based on the results obtained, maximizing your return on investment.

• Example: If the model detects that a Facebook video ad campaign generates more leads at a lower cost per conversion than a static image campaign, you can reallocate your budget to leverage the more effective strategy.

• How to identify it in the results: By analyzing the ad spend response curve on Facebook, you can see at what point additional investment begins to generate diminishing returns. This helps you identify how much to invest before reaching a saturation point.

Validation with incremental tests

• Complement the results with Facebook lift tests to gain greater precision and validate the effectiveness of your campaigns.

• Example: A software company could run an A/B test in two different markets, analyzing whether an increase in Facebook ad spend actually drives more conversions compared to a market with no change in spend.

• How to identify it in the results: By comparing the model's results with lift test data, you can validate the model's accuracy and adjust attribution to better reflect the true effect of each campaign.

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Why is it key for SaaS businesses?

This approach is especially valuable for SaaS companies, particularly those focused on specific markets like the medical or financial sectors. By applying MMM, you can strategically allocate your budget, identify which campaigns are actually working, and improve the efficiency of each advertising investment.

Turn your Facebook Ads strategy into a growth-optimized machine with a data-driven approach.