Marketers are facing a growing challenge in accurately measuring the effectiveness of their multi-channel media strategies due to the complexity of fragmented media consumption and changing privacy regulations. In response to the need for reliable and privacy-conscious measurement solutions, Marketing Mix Models (MMMs) are making a resurgence. MMMs are analytic tools that help businesses assess the overall impact of multi-channel marketing efforts on important metrics such as sales. A recent study with Kantar revealed that 60% of US advertisers are currently utilizing MMMs, and 58% of non-users are contemplating adopting them in the future. There is a noticeable trend of more customers, especially performance and full-funnel marketers, turning to MMMs for insights.
To support this trend, we are increasing our commitment to the advancement of MMMs. We are pleased to introduce Meridian, an open-source MMM platform that empowers teams to create top-tier MMMs and drive improved business results. Meridian is designed to facilitate advanced and privacy-aware measurement practices, tailored to meet marketers’ evolving needs. Key features of Meridian include:
- Innovation: Meridian will incorporate innovative methodologies to enhance the accuracy, actionability, and analytical robustness of MMMs. Initial innovations include calibration through incrementality experiments, integration of reach and frequency metrics to connect outcomes with planning, and insights on measuring search impact. These methodology enhancements will be applicable to all media channels that provide relevant data inputs. We are committed to continuously developing new innovations to assist marketers in modernizing their measurement strategies and maximizing the value of MMM in their planning and budgeting processes.
- Transparency: As an open-source solution, Meridian ensures complete transparency – enabling anyone to review the underlying code and methodology innovations. Users have full control, allowing modelers to customize the code and model parameters to suit their specific business requirements. Meridian serves as a flexible tool, like modeling clay, providing a starting point for users to iterate and refine further.
- Actionability: Meridian empowers marketers to make well-informed decisions by offering comprehensive data inputs, modeling guidance aligned with the latest innovations, and facilitating cross-channel budget optimization. Users can access YouTube reach and frequency data, as well as indexed Google query-volume data, in addition to other Google data sources for model creation. With Meridian, users can conduct scenario planning and optimize budgets to support forward-looking cross-channel media allocation.
- Education: Meridian provides users with a range of resources to support implementation and usage. Comprehensive technical documentation, including a list of technical FAQs for problem-solving, will be available. Users may also have the opportunity to seek assistance from Google and partner support for queries not covered by the existing documentation.
Deloitte’s measurement research indicates that C-Level leaders who prioritize Marketing Mix Modeling are over twice as likely to exceed revenue goals by 10% or more.
While MMMs may not be flawless today, they are continuously evolving. With Meridian, we aim to guide your team towards future success by fostering innovation and sharing our insights through an open-source model. We invite everyone to join us in this collaborative effort.
Meridian is currently available in limited access, with plans to extend general availability to all marketers and data scientists in the near future. To learn more about Meridian and sign up, visit here.
