The Elasticity session in the MMM Advanced Workshop provides a deep dive into one of the most practical metrics in marketing analytics. Elasticity measures how a small percentage change in a marketing input—such as price, TV spend, or impressions—impacts an outcome like sales or revenue. This concept is critical for comparing the effectiveness of different marketing levers and making data-driven business decisions.
In this session, participants explore:
The definition and intuition behind elasticity, including how it’s used to quantify responsiveness in marketing performance.
The difference between linear inputs (e.g., price) and non-linear inputs (e.g., media with adstock/saturation effects), and how elasticity is applied in each case.
Techniques for calculating elasticity using real and simulated data, with hands-on examples.
How to interpret elasticity values to identify areas of high sensitivity, helping guide pricing strategy, media mix planning, and ROI optimization.
The session also includes a real-world case study from a consumer goods brand, demonstrating how elasticity analysis was used to identify the optimal product pricing point—balancing revenue maximization with customer retention.
By the end of this module, participants will understand how to calculate and apply elasticity in a Marketing Mix Modeling context, allowing them to make more confident and strategic decisions across pricing, media investment, and budget allocation.
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