Google’s Marketing Mix Modeling (MMM) for Smarter Ad Spend is Available to all Users
When it comes to digital marketing, businesses rely on various channels—Google Ads, social media, email campaigns, and more—to drive sales. But how do you determine which channel is actually pulling its weight? That’s where Marketing Mix Modeling (MMM) comes in.
What Is Meridian and Marketing Mix Modeling?
Think of your marketing strategy as baking a cake. Each ingredient—flour, sugar, eggs and butter—plays a role in creating the perfect dessert. But how do you know which ingredient is contributing the most to the taste and texture? Could you adjust the proportions to make it even better?
MMM helps marketers analyze different ‘ingredients’ (marketing channels) to understand how each one impacts sales. It uses statistical analysis to measure the effectiveness of different marketing efforts—paid ads, organic search, TV, radio, and even external factors like seasonality and economic conditions.
Meridian is Google’s version of an MMM and is now available to all users.
Methodologies in Marketing Mix Modeling
There are several methodologies used in MMM, including regression analysis, time-series analysis, and machine-learning algorithms. The choice of methodology depends on the specific business problem being addressed, the type of data available, and the level of complexity desired. Care must be taken to ensure that the methodology is appropriate for the data and the business question being asked. By using a combination of methodologies, businesses can gain a more complete view of the impact of their marketing efforts on sales and revenue.
Why Is MMM and Meridian a Big Deal?
Most marketers rely on attribution models like last-click or first-click to understand performance, but those methods often oversimplify customer behavior. MMM, on the other hand:
- Gives a full picture – Instead of focusing only on one digital data point, MMM looks at the full marketing picture, including offline efforts.
- Accounts for external factors – Seasonality, economic shifts, and even competitor actions can impact performance, and MMM includes these in its analysis.
- Optimizes budget allocation – By identifying the most effective channels, businesses can reallocate spending for maximum ROI.
- Accessibility – Meridian launching as open-source software allows all marketers and data scientists to leverage this complex analysis model without the traditional barriers of proprietary MMM solutions.
Open-source means that businesses of all sizes—not just large corporations with deep pockets—can access, modify, and tailor the model to fit their specific needs. By making Meridian open-source, Google is helping marketers and analysts move beyond basic attribution models and harness advanced, data-driven insights to refine their budget allocation and maximize ROI.
Meridian: Google’s Modern Approach to MMM
Traditional MMMs were built for offline media and branding, making them less effective at measuring modern performance channels like Search ads. That’s why Google developed Meridian, an open-source MMM designed for today’s consumer journeys to help marketers make smarter, data-driven decisions when measuring outcomes across channels.
Meridian allows marketers to integrate real-world data and adjust models based on experiments and prior knowledge. This modern approach gives:
- Deeper insights into performance media – Meridian includes access to Google’s MMM Data Platform, offering key insights such as Google Query volume to better measure paid search impact.
- Smarter budget decisions – Meridian analyzes historical performance, allowing for multiple optimization scenarios to maximize budget efficiency.
- Better reach and frequency measurement – Unlike traditional MMMs that only measure impressions, Meridian accounts for how often and how many unique users are reached, ensuring more effective video ad investments.
Why Marketers Should Take Advantage of MMM
Marketing budgets aren’t infinite, and every dollar needs to work as efficiently as possible. Without MMM, you might be over-investing in underperforming channels or neglecting high-performing ones.
By using MMM you can:
- Reduce wasted ad spend
- Improve cross-channel attribution
- Make data-driven budget decisions
- Justify marketing investments with clear, measurable insights
Best Practices in Implementing MMM
To use MMM effectively, businesses should start by defining clear goals and objectives, such as increasing sales or improving marketing ROI. A well-structured data management process is essential, including data collection, cleaning and storage. Businesses should be prepared to look at different metrics, such as sales lift and ROI. By staying focused on the customer experience and using MMM to inform marketing decisions, businesses can create a more customer-centric approach to marketing.
Tying MMM to PPC & SEM
MMM and PPC (Pay-Per-Click) advertising go hand in hand. While PPC campaigns provide real-time insights, MMM looks at the bigger picture over time, ensuring that your paid search efforts are truly delivering results. If you’re running Google Ads or any form of SEM (Search Engine Marketing), MMM helps validate whether your spend is driving long-term value beyond just immediate clicks.
Google’s Meridian now offers marketers a more actionable and transparent MMM tool, providing advanced insights into the effectiveness of digital campaigns. To learn more, check out our SEM marketing services and see how you can optimize your ad spend for maximum impact.
Marketing Mix Modeling may seem complex, but it’s essentially a roadmap for better marketing decisions. By analyzing the impact of each channel and external factor, businesses can create more effective strategies and maximize ROI.
Google’s open-source Meridian model makes MMM more accessible, flexible, and data-driven than ever before.
Future of Marketing Mix Modeling
The future of MMM lies in its ability to incorporate new data sources and technologies, such as artificial intelligence and machine learning. As businesses evolve and adapt to changing market conditions, MMM will play an increasingly important role in informing marketing decisions. MMM will become more mainstream. By embracing MMM and staying ahead of the curve, businesses can gain a competitive advantage in today’s fast-paced business environment.
How to Get Started with Meridian
To get started with Meridian, marketers and data scientists can access the open-source code on GitHub. This allows teams to explore, customize, and integrate Meridian into their existing analytics stack. For those looking for expert guidance, Google’s certified partner program connects businesses with trained specialists who can assist in implementation, optimization, and best practices. As Google continues to enhance Meridian, users can expect ongoing improvements, including new features and refined methodologies, ensuring that the model stays at the forefront of modern marketing measurement.
At Brandastic, we help businesses navigate the ever-changing digital landscape with data-driven marketing strategies that maximize ROI. With the launch of Meridian, marketers now have access to a powerful, transparent, and customizable MMM solution that can uncover true performance insights across all channels. But having the right tools is only part of the equation—knowing how to interpret and act on the data is what drives real results. Our team specializes in PPC, SEM, and full-funnel digital marketing, and we can help you integrate MMM insights into a strategy that fuels growth. Ready to take your marketing measurement to the next level? Contact us today.
