Chapter 2: Understanding the Big Picture Of MMM

MMM helps you answer critical business questions like:

• “How effective are my marketing channels in driving revenue?”
• “What is my marketing return on investment (ROI)?”
• “How can I best allocate my marketing budget for future campaigns?”
• “How do I know when my social media spend exceeds the point of efficiency?”
• “How long does my March investment continue to influence sales?”
• “Is my media investment on social media affecting the impact of my offline efforts on sales?
• How does my TV advertising amplify the performance of my Google ads in driving sales?”
• “Is advertising for one product impacting the sales of my other products?” 

MMM Key Benefits:

• Privacy-First, Future-Proofed: MMM works with aggregated, non-personal  data, meaning it doesn’t rely on cookies or individual user tracking, making it a durable solution in a privacy conscious world.
• Actionable Insights: It provides clear visualizations and insights to inform your budget and planning decisions. You can understand not just the overall ROI, but also how the effectiveness of your spend changes as you invest more and approach diminishing returns.
• Incremental Effect: Results are based on incrementality rather than attribution, meaning that forecast scenarios focus on what actually increases revenue rather than what performs well in the platform. Last-touch revenue does not equal incremental revenue.
• Reach and Frequency: We can incorporate reach and frequency data, giving you a more nuanced understanding of your video campaigns’ impact beyond just impressions.
• Customizable: Our MMM provides you full transparency into the methodology and can tailor it to your specific business needs.

How We Action

• Budget Scenario Planning: The MMM will provide efficiency curves for iROAS by media channel and tactic. These curves are used to suggest changes to the future media plan and forecast the impact of those changes.
• Informing Testing Roadmap: MMM output will help inform the testing roadmap by determining which channels are most effective based on historical data, and testing them further with MMTs (Matched Market Tests) to validate assumptions.

Relevant Links:

MMM Code Base: Google Meridian