Attribution & Marketing-Mix Modelling

Budget Optimization Simulations

This quiz challenges you on spend allocation algorithms, constraints, and scenario planning techniques.

Budget optimisation simulations use response curves to allocate spend until marginal ROI equals ______.

maximum CPM

share of voice

target threshold

cookie cap

Allocations continue until the marginal dollar no longer meets the business hurdle rate.

Gradient‑free optimisers like Nelder‑Mead are preferred when response curves are ______.

linear

perfect

quadratic

non‑differentiable

Some curves include kinks or plateaus making gradients unstable.

2025 Google LightweightMMM added a simplex‑based optimiser constrained by ______ floors.

creative IDs

tracker length

pixel ratio

channel minimum spends

Minimum levels ensure always‑on channels aren’t zeroed out unexpectedly.

Scenario planning runs multiple optimisations varying total budget to produce an ______ curve.

efficient frontier

keyword

bounce rate

cookie usage

The frontier shows best possible ROI for each spend level, aiding CFO negotiations.

Optimisers often enforce a diversification rule, limiting any one channel to ______ % of total spend.

1

50

100

5

Diversification mitigates risk from over‑exposure to a single platform.

A what‑if on price reduction can be paired with budget optimisation because MMM includes price as a ______ variable.

baseline control

tag

target

cookie

Simultaneously exploring price and media scenarios yields holistic profit forecasts.

Monte Carlo budget simulations incorporate channel ROI uncertainty by sampling from ______ distributions.

posterior

cookie

uniform cost

fixed

Sampling acknowledges model variance, producing spend ranges rather than single points.

Spend granularity (e.g., $10k steps) controls the optimiser’s ______ space.

pixel

creative

search

cookie

Finer granularity can yield slightly better ROI but increases computation time.

2025 MMM tools export optimisation results via ______ API endpoint.

/device

/media

/crm

/v1/optimisations

Endpoints integrate with BI dashboards for automated refreshes.

Log‑transformed spend is back‑converted to linear dollars after optimisation to ensure ______ feasibility.

cookie

pixel

real‑world

color

Optimisation occurs in transformed space for convexity, then converts results to implementable budgets.

Starter

Review the basics.

Solid

Nice work—refine the details.

Expert!

Exceptional command of the topic.

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