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A Synthetic Benchmark Dataset with Endogenous Marketing Spend for Validating Marketing Mix Models

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  • Niklas Heusch

Abstract

Marketing Mix Models (MMMs) estimate the incremental sales effect of advertising from observational time series, yet they are rarely validated against ground truth, because ground truth is unobservable in real data. Synthetic data closes that gap in principle, but existing generators produce marketing spend exogenously - omitting the central difficulty of the estimation problem, since real budgets are planned around promotional calendars, seasons, and recent performance. This paper presents a parameterized generator, and a fixed reference instance, of a synthetic weekly retail dataset (156 weeks, three media channels) in which spend arises from four documented coordination mechanisms - quarterly budget feedback, anticipatory spending ahead of a promotional calendar, scheduled TV bursts, and algorithmic performance chasing - on a demand baseline with seasonal, quality, price, and unobserved sentiment components. Spend translates into incremental sales through two transformations, carryover and diminishing returns, instantiated here as geometric adstock and logistic saturation with known parameters; the true causal decomposition of every week's sales is recorded alongside the error-contaminated variables a practitioner would observe. Every mechanism is a parameter that can be varied or switched off, and a companion procedure simulates go-dark geo-experiments with exact treatment effects. The seeded generator and reference instance are publicly released with notebooks that reproduce every number in this paper.

Suggested Citation

  • Niklas Heusch, 2026. "A Synthetic Benchmark Dataset with Endogenous Marketing Spend for Validating Marketing Mix Models," Papers 2608.21130, arXiv.org, revised Sep 2026.
  • Handle: RePEc:arx:papers:2608.21130
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    References listed on IDEAS

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    1. Brett R. Gordon & Florian Zettelmeyer & Neha Bhargava & Dan Chapsky, 2019. "A Comparison of Approaches to Advertising Measurement: Evidence from Big Field Experiments at Facebook," Marketing Science, INFORMS, vol. 38(2), pages 193-225, March.
    2. Thomas Blake & Chris Nosko & Steven Tadelis, 2015. "Consumer Heterogeneity and Paid Search Effectiveness: A Large‐Scale Field Experiment," Econometrica, Econometric Society, vol. 83, pages 155-174, January.
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    Cited by:

    1. Niklas Heusch, 2026. "Structural Estimation of Marketing Mix Model Parameters from Geo-Experiments," Papers 2608.21128, arXiv.org, revised Sep 2026.

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