A basic single-market MMM project typically costs between 25,000 and 80,000 pounds from a specialist consultancy. More complex projects covering multiple markets, product lines, or requiring ongoing refreshes can cost significantly more. Open-source tools are free, but the expertise to use them is not.
Cost is one of the first questions marketing directors ask about MMM, and it is often the reason brands delay starting. Understanding what drives the price helps you scope a project that fits your budget without sacrificing the quality of results.
What drives the cost of an MMM project
The biggest driver is scope. A single-market model with 5 to 8 channels and clean data costs significantly less than a multi-market model covering 10 countries with regional breakdowns and 15 channels each. Every additional dimension adds data collection, modelling, and interpretation time.
- Number of markets: each additional market often adds 20 to 40 percent to the project cost
- Number of channels: more channels require more data and longer model build times
- Data quality: messy or incomplete data increases cleaning time significantly
- Granularity: weekly national data is cheapest; daily regional data is most expensive
- Deliverable type: a model with budget optimisation and scenario planning costs more than results alone
- Refresh frequency: ongoing quarterly or annual updates add to the total annual cost
The three main pricing structures
Most MMM providers charge in one of three ways. Project-based fees cover a single build and results delivery, typically with one round of revisions. Retainer models charge a monthly or annual fee and include ongoing model updates, scenario planning, and access to a modelling team. SaaS platforms (software-as-a-service, meaning you access the model through a web interface) charge a subscription fee based on number of markets or channels modelled.
Project-based fees work well for brands doing MMM for the first time. Retainers make sense once you have validated the method and want it embedded in your planning process. SaaS platforms can reduce cost but often involve less customisation.
What you should expect for the price
A fair-priced MMM project should include: complete data collection support, a validated model with documented assumptions, full channel ROI estimates with confidence intervals, budget optimisation scenarios, and a presentation of findings to your team. If the proposal does not include validation or confidence intervals, push back.
How to evaluate value, not just price
The right question is not "what does the model cost?" but "what revenue improvement could acting on the model generate?" If your annual media budget is 5 million pounds and the model identifies a 10 percent efficiency gain, that is 500,000 pounds of value from a 50,000-pound project. The ratio matters more than the absolute cost.
Ask prospective providers for case studies with quantified outcomes. If they cannot show examples of recommendations that led to measurable improvements, the price is irrelevant.
Hidden costs to watch out for
Internal time is a cost that rarely appears in a supplier quote. Data collection and cleaning will require meaningful time from your finance team, your media agency, and your analytics team. Budget at least 2 to 3 days of internal time per week during the data collection phase. Also factor in the cost of any incremental software or computing infrastructure if you are running an open-source model.
Can we use free open-source tools to reduce cost?
The tools themselves are free, but running them requires data science expertise that is not free. If you have an in-house data scientist with MMM experience, open-source tools can significantly reduce your spend. If you do not, you will need to hire a partner regardless of which tool they use.
Is it worth paying for MMM if our media budget is under 2 million pounds per year?
It can be. The threshold is not the budget itself but whether the potential improvement in efficiency exceeds the cost of the model. At smaller budgets, simpler and cheaper model builds may be sufficient. We cover this in more detail in our guide on MMM for smaller brands.
How often should we run MMM, and does that affect the total cost?
Most brands run a full model build annually, with scenario updates quarterly. Annual refreshes cost less than the initial build because the data pipeline is established. A full annual programme typically costs 60 to 80 percent of the initial project fee.