Google expands capabilities of its open-source MMM program | MarTech

"The updates expand what marketers can measure. Meridian now supports non-media variables, such as pricing and promotions, enabling businesses to have more information about how these factors impact sales. It also introduces channel-level contribution priors, which let marketers apply their own business knowledge to the model for more actionable insights. New marginal ROI (mROI) priors also help marketers identify where the next dollar will drive the highest return, based on past performance."

"In addition, Meridian now makes it easier to measure the longer-term effects of upper-funnel media - such as brand recall and delayed influence that drive purchases weeks later. This is powered by enhanced binomial adstock decay functions, which optimize over time. Traditional MMMs struggle to accurately measure digital and AI-powered campaigns, particularly in channels like search. Meridian addresses these gaps with features such as Bayesian causal inference, direct integration with Google's MMM Data Platform, and the ability to validate model outputs against real-world experiments."

"Meridian offers a way to model performance across channels without relying on black-box vendor solutions. Being open-source, it gives data scientists transparency and the ability to adapt the framework. Google's integration ensures access to more granular data for Google Ads, enabling more precise optimization."

Google updated Meridian, an open-source marketing mix model, to expand measurement capabilities and budget decision support. Meridian now supports non-media variables such as pricing and promotions, enabling measurement of their impact on sales. The model adds channel-level contribution priors so marketers can apply business knowledge for more actionable outputs. Enhanced binomial adstock decay functions enable measurement of longer-term upper-funnel effects like brand recall and delayed influence. New marginal ROI (mROI) priors identify where marginal spend will yield highest return. Meridian also includes Bayesian causal inference and integrates with the MMM Data Platform for validation and granular Google Ads data access.

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