AI-Enhanced Marketing Mix Modeling: Integrating ML, XAI, and LLMs for GreaterAccuracy, Interpretability, and Actionability
This paper proposes an AI-enhanced Marketing Mix Modeling (MMM) framework that integrates machinelearning (ML), explainable AI (XAI), and large language models (LLMs) to evaluate marketing effectiveness withimproved predictive accuracy, interpretability, and practical applicability. Moving beyond traditional MMMapproaches, the framework employs the XGBoost algorithm to capture nonlinear relationships between multichannelmarketing investments and business outcomes. SHAP analysis further enhances model interpretability throughfeature-importance rankings, beeswarm visualizations, and dependence plots that quantify each channel’s marginalcontribution. In addition, a Claude-based LLM module translates […]