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How to Build a Media Mix Model

Confused about how to attribute credit for sales and brand-building success? You’re not alone. It’s a hot topic given the level of media spending in digital formats and continued media fragmentation. But there’s a way to do it called media mix modeling. And it should be at the head of every marketer’s priority list. Let’s start with a pair of baseline examples, advertisers with retail, call center, and online commerce touch points with their customers. Vonage and XM Radio fit the bill. Their activities sound complex, but there is something to be learned from the way they sell their products and interact with their customers over time. Both firms sell through retail at establishments like Target, Staples, Best Buy, Comp USA and Circuit City. You can buy at these stores and activate your account either by phone or online. In addition, both can take your order right online, and will ship your device. You can activate your account either by phone or online in this scenario as well. Both fi...

You, the Record Mogul

Want your own recording label? Producing music has never been easier or cheaper. Richard Budrik, 54, had been manager of a Manhattan wine store for two decades when he decided last year to start his own record label. Huh? A middle-age man who knew zip about the shark-eat-shark music business? Throw money into an industry that was laying off thousands of workers? Budrik, though, did not have to risk his life savings, as he might have done a generation ago. He invested a measly $5,000. More surprising: In just 18 months his little label, Premier Cru Music, has pulled in revenue of $16,000 and has gotten worldwide airplay on BBC radio. Budrik woke up one morning to find himself producer of a Bangkok disc jockey's top-five pick. Technology has done to the marketing of recorded music what it did a decade ago to the publishing of the printed word--lowered the barrier to entry down to just about zero. Clay Pasternack, chairman of the Association for Independent Music, says you can put out...