Repositioning Marketing Mix Modeling (MMM) from a purely financial ROI calculation to a measure of consumer response and brand health can secure broader organizational buy-in, especially from brand-focused teams.
Relying solely on short-term performance marketing becomes unsustainable. Brand investment acts as the fuel for these channels; cutting it means you must spend progressively more just to maintain the same results, leading to a negative spiral.
Gap's CEO, Richard Dixon, implemented a playbook centered on reinvigorating the brand's core DNA and connecting it to modern culture. This focus on cultural relevance, rather than just product, is presented as the primary driver of their financial resurgence.
If your creative assets aren't culturally relevant, you're forced to overspend on media to achieve impact. Truly resonant content generates organic reach and makes paid amplification more efficient, a key argument for CFOs on the value of creative investment.
Gap's Head of Digital argues that a lack of brand investment forces performance marketing to work harder and become less profitable. Strong brand relevance makes all other marketing efforts more efficient, creating a symbiotic relationship.
At Gap Inc., CEO Richard Dixon champions a culture of creative curiosity. This mindset ensures that data-driven tools like Marketing Mix Models are used to unlock new opportunities and disrupt existing practices, rather than simply optimizing past performance.
Gap Inc. integrates MMM insights but doesn't let them dictate strategy monolithically. They combine model outputs with real-time sales data and consumer trends to disrupt themselves, acknowledging that MMMs are based on historical data and can stifle innovation if followed too rigidly.