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What Is Robyn and How Is It Going To Change The Marketing World?

Imagine a world where you could gauge your marketing efforts, see what individual results they brought, and optimize your current and future strategies based on this.

All of it without paying for expensive tools or services.

Sounds unreal?

Well, Meta is used to bringing such cool stuff and they’re bringing yet another innovative product: Robyn.

It’s an open-source tool developed by Meta’s marketing science team that can help agencies or businesses run marketing mix models in-house.

Before we dive further into Robyn, let’s first learn what MMM is.

What Is Marketing Mix Modeling (MMM)?

Marketing mix modeling (MMM) is much like doing a comprehensive medical-check up on your marketing ecosystem.

Just as a doctor evaluates various symptoms and diagnostic tests to understand a patient’s health, MMM analyzes different marketing factors such as advertising, promotions, pricing strategies, and distribution channels to diagnose the health of your business.

How? MMM looks at your historical data and identifies the impact of each marketing component on key performance indicators, much like how medical tests reveal the effects of different treatments on a patient’s condition.

Result?

You get a complete scan of your marketing efforts and can practically see how specific components contribute to overall results.

With this knowledge, you can prescribe tailored marketing strategies to optimize resources and enhance the overall well-being of the brand.

This is the traditional or classic marketing mix modeling approach. Robyn takes it one step ahead.

Let’s see how.

Robyn: A New Era Of Marketing Mix Modeling

You see, the marketing landscape moves and evolves fast and so do the relevant data and trends.

Traditional methods often fail to keep pace with the dynamic nature of consumer behavior and market trends.

This is why today’s contemporary marketing mix modeling demands models that are not only dynamic but also updated frequently and calibrated based on real-world data. This level of agility and efficacy is unattainable with classic MMM methodologies.

However, Robyn changes the game by using machine learning and access to diverse datasets.

Gone are the days of static models and rigid methodologies. Robyn marks a new (and exciting) era where marketing mix modeling becomes faster, more dynamic, and incredibly accurate, all within the confines of your own marketing department.

By leveraging higher-quality input data, improved methodologies, and semi-autonomous calibration, Robyn combines the best of MMM, multi-touch attribution, and advanced machine learning methods.

Now that we’ve explored how Robyn improves upon traditional marketing mix modeling, let’s delve into some specific advantages of using this innovative tool.

Robyn’s Impact: Three Amazing Benefits

1. Minimizes Human Bias

MMM requires developing a statistical model that quantifies the relationship between marketing variables and sales outcomes. This means there has to be a human element in data selection.

And as we know “to err is human.”

Now we don’t say that someone would intentionally mess up with data doing this critical job, but there can be some human inclination to choose what data set to work upon.

Now, Robyn excels at reducing human bias and enhancing the accuracy of its output through various features.

Automated Adstock and Saturation Curve Values

Robyn uses advanced techniques like automated multi-objective hyperparameter optimization, powered by an evolutionary algorithm.

This clever approach efficiently explores numerous combinations of adstock and saturation curves, ultimately minimizing errors in the model while considering factors like model error, decomposition distance, and calibration error.

Ridge Regression

Utilizing ridge regression and regularization techniques, Robyn tackles the challenge of intercorrelated explanatory variables.

What does it mean?

Think of ridge regression as a smart way to handle a bunch of interconnected things. When you have a lot of factors that might influence something, like different ingredients in a recipe, ridge regression helps make sense of it all. It’s like having a recipe that adjusts itself to make sure you get the best results without using too much of one ingredient or leaving out others.

By preventing overfitting and providing more flexibility in variable selection, Robyn ensures a more robust and reliable modeling process.

Prophet Seasonality Decomposition

Robyn also integrates Prophet. It is an open-source machine learning library specialized in time series forecasting. This feature automatically separates the trend and seasonality components from the response variables, enhancing the accuracy of the analysis.

But can you simplify this for me?

Sure. In traditional marketing mix modeling, human analysts play a significant role in selecting variables, determining adstock and saturation curve shapes, and identifying trend and seasonality patterns.

Robyn, on the other hand, minimizes human bias by leveraging sophisticated algorithms and automation, ensuring more objective and precise results.

2. Aligns with Empirical Data

MMM uses experiments (technically known as randomized control trials (RCT)) to figure out the incremental effect of marketing activities.

Still, Robyn ensures its predictions match up with what really happens in the world.

Here’s how:

a. MAPE

Robyn employs tests to gauge its accuracy, measuring the mean absolute percentage error (MAPE) between predicted and actual outcomes for specific channels.

b. Hyperparameter Optimization

When building a model, the Robyn model minimizes the disparity between its predicted and observed results for each channel and time frame.

c. Pareto-driven Data Enhancement

By prioritizing calibration MAPE, Robyn strengthens its alignment with experimental findings, ensuring closer adherence to real-world outcomes.

3. Improves Decision Making

Robyn makes decision-making easier by providing a tool called the budget allocator, which helps in distributing resources effectively.

How Does Budget Allocation Work?

Think of the budget allocator as a smart calculator. It figures out the best way to spend your money on different things like ads or promotions.

It considers things like how much money you have and how much each option will help you.

Plus, it helps you easily spot marketing modes that bring diminishing returns.

How?

It shows you steep graphs that almost look like roller coaster tracks. These graphs tell you where you’re getting the most out of your money and where you’re not.

The budget allocator, like a super-smart guide, helps you move your money around on these tracks to get the best results. So, if one type of ad isn’t working as well, it suggests putting less money there and more where you’re getting better results.

Now that we know what Robyn is and how it’s an upgrade from traditional MMM.

Let’s see how it can be a game-changer for the marketing world.

Why Should Robyn Excite You?

Robyn isn’t just another tool in the marketing arsenal; It might shake up the entire marketing world.

Those who’re in this game are super excited about it and here’s why you should be too.

Privacy-Safe Marketing

Privacy is a critical concern, especially in this era of ever-evolving regulations and a sensitive political climate. With Robyn, businesses can embrace privacy-safe marketing practices without compromising on effectiveness.

It eliminates the need for personally identifiable information (PII) and log data. This not only simplifies the process but also reduces security risks and ensures compliance with privacy regulations.

As an added bonus, this also builds trust between marketers and consumers.

Managing Cross-Media Investments

Knowing where to allocate your marketing budget across various channels is crucial for success.

With consumers engaging across multiple platforms, from social media to traditional advertising channels, it’s more critical than ever to make informed decisions about where to invest your marketing dollars. That’s where Robyn steps in as your guiding light, offering deep insights into cross-media investments that go beyond surface-level analytics.

Harnessing Unique Variables

Every business is different and has unique variables. These range from demographic data to consumer behavior patterns that provide a deeper understanding of your target audience and their preferences.

Robyn understands this and incorporates these variables into your marketing analysis and decision-making processes.

As a result, you can create highly targeted campaigns that are more likely to resonate with your audience, drive engagement, and ultimately, lead to conversion.

Integrated Market Budget Optimizer

Robyn’s integrated budget optimizer is a game-changer for marketing teams. With custom constraints and advanced algorithms, it streamlines budget allocation, maximizing ROI while minimizing wasted resources.

Moreover, the optimizer’s ability to adapt to changing market conditions and consumer trends empowers businesses to make informed decisions in real time, driving sustainable growth and competitive advantage.

Advanced Features Calibration

Robyn doesn’t just provide insights; it validates and calibrates them on a massive scale.

Yes. It can handle large volumes of data with precision, identifying patterns, trends, and correlations that may elude traditional methods. This meticulous calibration process ensures the accuracy and reliability of results, which in turn turbo-charges your marketing strategies, even in the face of complex challenges.

So, with Robyn at the helm, the game is about to change.

Its super-smart abilities are set to make a big mark in how we figure out the best ways to advertise and sell stuff.

Breaking Boundaries: Into the Realm of MMM and Beyond

Alright, let’s keep it real. Understanding MMM and Robyn can feel like wandering into a maze of jargon and complexity.

But hey. We got your back!

At Mongoose, we’re all about breaking down those barriers. We’re all about testing out the latest marketing tools and tech, making sense of it all, and serving up the juiciest bits in a language everyone can understand.

So, whether you’re a seasoned marketer or new to the tech scene, trust us to be your guide through the ever-changing landscape of marketing innovation.

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