Google launches ‘Meridian,’ an open-source marketing mix model for ad measurement and budgeting
The tool offers transparency and lets advertisers retain control over their data
Highlights:
- Google has introduced Meridian, an open-source marketing mix model (MMM) for advertisers.
- The tool will enable businesses to allocate budgets and measure cross-channel ad performance.
- Meridian uses Bayesian causal inference to improve ad impact measurement.
Today, Google launched Meridian, an open-source marketing mix model (MMM) designed to optimize ad spend and improve measurement accuracy across channels.
“Today we’re launching Meridian, the open-source marketing mix model (MMM) built by Google, available to all marketers and data scientists,” the company said in a blog post.
According to Google, Meridian addresses the limitations of traditional MMMs by incorporating performance media insights, including paid search contributions.
How Meridian works
Google claims that Meridian uses Bayesian causal inference, which integrates prior knowledge with real-world data to measure the impact of marketing efforts. The model aims to enable advertisers to understand how different media channels contribute to business outcomes such as sales, website visits, and conversions.
Ad Budgets allocation
According to Google, Meridian offers advertisers access to the MMM Data Platform. It enables advertisers to analyze campaign performance based on key business metrics, including core data such as impressions, clicks, and cost for Google media.
It also introduces new value-added dimensions like Google Search query volume, for advertisers to understand how their paid search efforts impact business outcomes.
Google says Meridian will let advertisers make data-driven budget decisions based on key performance indicators (KPIs). It will allow marketers to run multiple optimization scenarios to determine the most effective allocation of their ad spend.
Video measurement with YouTube reach and frequency
Unlike traditional MMMs, which focus primarily on impressions, Meridian models reach and frequency for YouTube ads. Google claims this approach helps advertisers maximize the impact of their video investments.
Enhanced MMM accuracy with experiment calibration
Meridian can integrate incrementality experiments across media channels. This means advertisers can calibrate their MMM models with real-world test results.
Open-source and transparent framework
Google says Meridian is fully open-source. Businesses will have complete control over the model. Advertisers will also maintain control over their data since it is not shared with Google.
Support from certified measurement partners
Google has also launched a certified measurement partner program, with companies like Analytics Edge offering support for implementing Meridian and optimizing investments.
Where to access Meridian
Meridian’s code repository is available on GitHub, along with detailed documentation to help marketers get started. Advertisers can choose to use the MMM framework as it is or customize it based on their business needs.
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