MMM Insights
Apoorva Wate avatar
Written by Apoorva Wate
Updated over a week ago

Insights sections offer a deep dive into the effectiveness of your marketing strategies, leveraging historical data and advanced analytics. This section is key for extracting actionable insights, enabling you to evaluate and optimize the effectiveness of different marketing channels.

Actual Vs Predicted

The model predicts the KPI based on your historical data. You can analyze the trend line here to see how accurately the model predicted the revenue.

Share of Spend vs. Revenue

Based on the input data, the model predicts the KPI for each channel. It represents which channels are getting the highest share of the budget vs. which ones are generating the highest share of conversions.

Incremental Revenue over Baseline

The table displays the predicted value of the incremental influence a channel has on your KPI on a time series. You can view your incremental revenue from paid media here.

Platform contribution

The table displays overall how much incremental contribution each paid advertising platform is bringing to the business outcome over and above the baseline outcome which would have occurred irrespective of paid advertisement.

ROAS Analysis

ROAS is a marketing metric that measures revenue earned for every dollar you spend on advertising. The ROAS Analysis chart represents the ad spend, KPI, and ROAS/CPA of each platform in one chart.

The x-axis represents the Return on Ad Spend (ROAS) and y-axis represents the Conversion Value (attributed revenue or order) on y-axis. Additionally, the size of each bubble on the chart corresponds to the amount spent on that specific platform: larger bubbles denote greater expenditure.

Blended ROAS (vertical reference dotted line) represents the average of Lifesight ROAS across all sources used in the graph. It's crucial to interpret the positioning of various platforms relative to this line. Platforms situated to the left of the dotted line are underperforming relative to the average. This placement indicates their ROAS is lower than the average, suggesting a less efficient return on advertising spend. Conversely, platforms on the right side of the line are outperforming, with a ROAS higher than the average, denoting a more effective use of the advertising budget. This distinction is essential for guiding strategic decisions in advertising resource allocation.

What is a good return on ad spend?

Pinning down a “good” ROAS is difficult, but in general, you want to have a ROAS that is over 100%. If you have a ROAS of 100%, you break even with your ad spend and your ad return.

A Return on Ad Spend (ROAS) below 100% suggests that your advertising campaign is incurring costs exceeding its revenue, necessitating a strategic review and potential adjustments to enhance its effectiveness and profitability. Conversely, a ROAS exceeding 100% indicates a profitable campaign, reflecting successful strategy and execution, yet it remains important to continuously monitor and optimize the campaign to sustain or further improve its success.

If you have any further queries, please write to us at [email protected] and we'll get back to you at the earliest.

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