Guide

Scenario Planning

Short answer

Marketing scenario planning uses response curves from MMM to simulate the profit impact of different budget allocations before you commit spend. It is how measurement becomes a decision system rather than a rear-view report.

From coefficients to decisions

An MMM produces a response curve for every channel: expected incremental profit at each spend level. A scenario planner combines those curves under constraints (total budget, minimum spend per channel, brand vs performance mix) and returns the optimal allocation.

Typical questions it answers

"What is the profit-maximising budget?" "What if we cut 20%?" "Where should incremental £5m go?" "What if CPMs rise 15%?" "How does the plan change under a recession scenario?"

Why it beats spreadsheet planning

Spreadsheets assume linear ROI. Reality has diminishing returns. A scenario planner built on saturation-aware MMM curves catches the point where the next pound stops working: which is exactly where most brands overspend.

FAQs

Do I need to be a statistician to use a scenario planner?

No: a good planner exposes a simple interface where marketers can drag sliders and see profit and reach change in real time.

See how twenty10 puts this into practice

Bayesian MMM, calibrated with experiments, refreshed monthly, delivered as a decision system.

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