Google launches Meridian, a new approach to marketing mix modeling

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While the end of third-party cookies approaches, Google announces the launch of Meridian, an open source marketing mix modeling (MMM) software.

Measuring the full value of a multi-channel marketing strategy is complex. And with the evolution of data tracking, including the phasing out of tracking cookies, improved measurement options are needed to ensure optimal ROI. As advertisers look for comprehensive and sustainable measurement solutions that respect confidentiality, marketing mix models (MMM) are emerging as a solution for advertisers.

What is Marketing Mix Modeling (MMM)?

Marketing mix modeling (MMM) is an approach that aims to identify the contribution of each type of marketing investment to sales. Based on statistical analysis, MMM enables companies to measure the overall impact of their cross-channel marketing strategy on key results such as sales. The aim of marketing mix modeling is therefore to optimize marketing budgets to increase ROI. According to a study conducted by Kantar, 60% of US advertisers currently use MMMs, and 58% of those who do not use these models are considering doing so in the future. To meet this need among marketers, Google has just announced the launch of a new open source MMM. Called Meridian, this package will eventually replace Google's existing MMM modeling software LightweightMMM. An approach that is often crowned with success, since according to a Deloitte measurement study, C-level executives who attach great importance to marketing mix modeling are 2 times more likely to exceed their revenue targets by 10% or more.

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Meridian, an open source marketing mix model (MMM)

Google states on its blog that this new tool, will enable "teams to create best-in-class MMMs and achieve better business results. It's designed to enable advanced, sustainable metrics while respecting confidentiality and meeting marketers where they are."

With Meridian, Google anticipates the end of third-party cookies by offering a tool for marketers. The software will provide access to various data points, including YouTube reach and frequency, as well as indexed data on the volume of Google queries, while also providing educational resources and technical FAQs for troubleshooting.

Google also points out that the Meridian methodology will be totally transparent: "Meridian is designed to give control to the user, as any modeler is fully empowered to modify the model's code and parameters to meet their unique business needs. Think of Meridian as modeling clay: a starting point that allows users to iterate and develop further."

Meridian is currently available on a limited basis. Google plans to make it available to all marketers and data managers in the very near future.