Pouya

Pouya Zargar

Data Scientist

Poseidon Digital UK

Yerevan, Armenia

Talk

Beyond OLS: Solving the Multicollinearity Trap in Marketing Mix Modeling with Python
Track: Data Science Duration: 50 minutes View on Schedule
Python Data Science Testing

Marketing Mix Modeling is undergoing a renaissance, but its biggest enemy remains the high correlation between advertising channels. When Google Search, Meta, and TV spends all peak during the same seasonal window, standard Ordinary Least Squares (OLS) regression struggles to assign credit, often resulting in "unstable" models where one channel's gain is another's loss.
In this session, we will move past the basics of statsmodels and explore how to handle real-world data "noise." We will cover:
1. The Diagnosis: Identifying Multicollinearity in marketing data using Variance Inflation Factors (VIF) and correlation matrices.
2. The Stabilizers: Implementing Regularized Regression (Ridge and Lasso) via scikit-learn to penalize extreme coefficient swings and handle "wide" datasets.
3. The Bayesian Path: A look at how Bayesian Priors (using libraries like PyMC or Google’s Lightweight MMM) allow us to "anchor" our models with prior knowledge from incrementality tests or historical benchmarks.
4. Actionable Insights: How to translate these technical adjustments into a story that stakeholders and CMOs trust.
Attendees will leave with a clear roadmap for building more robust measurement frameworks that don't crumble when two media channels move in sync.

About the Speaker

Over 10 years of experience as management consultant, marketing strategist & data scientist.
I work closely with my clients to understand their needs and develop solutions that are tailored to their unique challenges.
My approach is transparent, data-driven, & designed to help businesses succeed.
I specialize in providing top-notch services in areas such as Marketing, Strategy, Business Modeling & Optimizing Operations.
I employ advanced analytical tools to ensure robust & effective results that can steer your business towards success. Having collaborated with numerous industry leaders, I am adept at crafting strategies, approaches, & tactics grounded in thorough & robust market analyses. Whether you’re a corporate entity or a start-up, I can align with your vision to develop comprehensive marketing strategies

Recording

Video will be available after the conference.