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Using MMM for Planning: Forecasting vs. Optimization
White Paper
Why this white paper?
- To clarify when MMM should be used to explore future scenarios versus when it should be used to optimize spend
- To help teams avoid overconfidence in forecasts or misapplied optimization outputs
- To bridge the gap between modeling outputs and executive decision-making
This white paper examines how MMM supports forecasting and optimization, why these are not the same thing, and what that distinction means in practice. It offers a clear, practitioner-led view on how to use MMM for planning that is both analytically sound and operationally realistic.
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Here is what will be covered in this white paper:
- The practical differences between forecasting and optimization in MMM-based planning
- How response curves, time effects, and aggregation shape planning outcomes
- What’s required to move from static MMM studies to ongoing, decision-ready planning systems