Media Mix
The media mix refers to the way we are using different marketing media to drive response in an integrated fashion. In this example, we look at how traditional direct mail (DM, sometimes called “snail mail”) works alone vs. email (EM) alone versus DM + EM used in combination. 
Planning
A test cell must be large enough to be statistically valid and to enable comparison across cells. If the test cell is too small, the results are not statistically significant and are therefore meaningless. The minimum sample size for each test cell is determined by the expected response rate, confidence interval, and allowable percentage error. Click here for a tool that calculates the minimum sample size.
Backend Analysis
Using a confidence interval worksheet, we can determine whether the observed response rates between the three programs are statistically significant. The confidence interval worksheet can be found by clicking here.
For this example, at the 95% confidence level, the expected response rate for the DM-only cell ranged from a low of 1.36% to a high of 1.63%. The expected response rate for the EM-only cell ranged from a low of 1.28% to a high of 1.52%. The expected response rate for the DM + EM cell where direct mail and electronic mail were used in combination ranged from a low of 2.03% to a high of 2.37%.
Business Impact
Here we can conclude at the 95% confidence level that customers targeted responds best to a combination of email and direct mail. Additionally, there is no statistical difference in response for direct mail (alone) versus email (alone).
Since EM is much less expensive than DM the fact that the two medium work equally well is an important finding. Assuming this result continues to hold up with additional testing, it means that we should target customers based on their addressability. Customers who can be reached through DM + EM should come first in the order of priority, customers who can be reached through EM should come second, and customers who can be reached through DM only should come third in priority.
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