This week’s Cumulus Media | Westwood One Audio Active Group blog® is an examination of Media Mix Modeling from John Fix, formerly from P&G. It explains how underspending generates weak ROI in Media Mix Modeling and the benefits of moving to an optimization mindset of, “Did this execution of AM/FM radio work?”
- Response curves depict the impact of varying levels of media investment to sales response and ROI: Underspending generates weak ROI.
- ROI varies by investment level. One snapshot of ROI does not tell the whole story: As-run data of actual deliveries have significant variation.
- Response curves tell a richer ROI story of varying levels of investment: As impressions increase, reach increases and users are exposed to multiple impressions. Because reach builds as a curve and frequency is assumed to influence consumers, there is an expectation that sales will correspond.
- Media Mix Modeling can be used to optimize within the AM/FM radio campaign to achieve the best performance.
To read the full blog post by John Fix, visit: https://www.westwoodone.com/blog/2025/06/09/underspending-generates-weak-roi-in-media-mix-modeling-and-the-benefits-of-moving-to-an-optimization-mindset-of-did-this-execution-of-am-fm-radio-work/
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