Google has made its open-source Meridian Marketing Mix Model (MMM) open to all.
Meridian was announced last year, with Google’s senior director, data science, Harikesh Nair, saying that while 60 per cent of advertisers were using MMMs previous offerings were limited.
“Traditional MMMs, built for offline media and branding, have historically been unable to fully measure performance media, like Search ads, and AI-powered campaigns. They lack a modern approach, which may lead to inaccurate budget decisions. They may not update assumptions based on incrementality experiments or provide granular insights, such as optimal frequency or regional nuances,” wrote Nair.
“Instead, incorporating a modern MMM, such as Meridian, into your measurement toolbox helps drive better business outcomes. It relies on Bayesian causal inference that allows you to blend your prior knowledge with real-world data and reveals the true incremental impact of your marketing.”
Google pointed to Australian financial company Finder’s work with Meridian, which it said succeeded because the MMM was “customised to their needs”.
“At Finder, our mission is to help people make better financial decisions and we try to apply that approach to everything we do — including our own marketing,” said Jennifer Snell, GM Marketing & Loyalty, Finder.
“With Meridian, we now have much more confidence in our ability to measure the impact of our investments. This has moved us from investing time and resources into creating linear regression models from scratch, to an agile, best-in-class solution that our team can still own and manage. The insights we’ve gained have reinforced the additional value that YouTube drives beyond what’s visible with standard conversion tracking.”
Google reckons that its MMM will deliver value above and beyond the current offerings. For instance, Meridian will give advertisers access to the MMM Data Platform meaning core MMM data such as impressions, clicks and cost will be available for Google media, but also new value-add dimensions such as Google Query volume.
Its open-source nature means that advertisers and agencies will be able to examine Meridian’s code and methodology and also the chance to modify the code and model parameters to fit their specific needs.
It will offer deeper insights into video performance beyond impressions, adding reach and frequency into analyses. Google also said it will integrate incrementality experiment results as priors, agnostic of the channel or the experiment. This means that the model can be calibrated with real-world results, for more accurate outcomes directly aligned with real business goals.
The MMM scene has certainly be heating up of late. Longstanding player Analytic Partners recently acquired marketing analytics software and services company Analyx, for instance.
Mutinex, the darling of Australia’s MMM scene, announced three senior hires yesterday in Nielsen’s Jon Betts, Jess Betts (no relation) from Kantar and Andie Potter from PHD.
“By combining Mutinex’s next-generation MMM with the deep data and digital expertise of these hires, we’re leveling up how marketers plan, invest, and optimise—think of it as your 24/7 growth co-pilot. We give you the freedom to pivot quickly, allocate budgets with pinpoint accuracy, and confidently deliver the ROI that boards and CFOs demand,” Mutinex chief revenue officer Danny Bass said.
Mutinex’s chatbot-style Hendren interface has already been described as a game-changer by some.
Newer entrant to the market Prophet, meanwhile, is aiming to speed up the game with.
CEO Jordan Taylor-Bartels previously told B&T that there are three fundamental flaws in marketing mix modelling as it stands: 30-90 day data lags, incapability to assess linear associations between different media channels and a lack of macro-economic data such as interest rate hikes, global conflicts and petrol prices and how these might affect consumers’ purchasing decisions.
How Google’s entry to the market plays out remains to be seen.
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