MMM models the relationship between aggregate sales and channel spend over time or regions. It can account for lag, saturation, seasonality, price, and other factors.
Increasing the budget in the demo first raises estimated contribution quickly, then with diminishing returns. The curve is illustrative rather than a fitted model.
Estimates depend on input data and assumptions. Calibrate with experiments and inspect uncertainty and diagnostics before reallocating budgets.
When to use
Use it to plan budgets when individual paths cannot capture all channel effects.