Marketing Mix Modeling relies on saturation curves to capture how marketing effectiveness changes with spend. While Hill functions offer flexibility through their shape parameter, the Michaelis-Menten equation provides a simpler, more interpretable model for channels that exhibit immediate diminishing returns.
Originally developed to describe enzyme kinetics in biochemistry, the Michaelis-Menten equation has become a fundamental tool in marketing analytics for modeling saturation effects without threshold behavior.
Where: - R is the response (e.g., conversions, sales) - X is the marketing spend - K is the half-saturation constant (spend level where response reaches 50% of maximum)
The Michaelis-Menten equation is actually a special case of the Hill function where n = 1. This makes it the simplest saturation model that still captures diminishing returns.
À propos de l'auteur
Cyril Noirot
Lead Data Scientist
Data scientist freelance. Je conçois et déploie des systèmes de décision — prévision, pricing, marketing measurement, optimisation.