Author

Johan Walda

Manager Data Science

On the 20th of March, Artefact and Google had the pleasure of co-organizing a special event centered around the launch of Google’s latest innovation in Marketing Mix Modeling (MMM), the open-source model Meridian. This event was a unique opportunity for advertisers and marketers to explore how this cutting-edge tool can revolutionize marketing measurement and optimization.

Introducing Meridian: Google’s Open-Source MMM Framework

Meridian is an innovative open-source MMM framework designed to help businesses measure the effectiveness of their marketing campaigns across multiple channels. As one of the first Meridian Certified Partners in Northern Europe, a Google Analytics Certified Partner, and the only company in the Benelux and Nordics regions holding both Google Marketing Platform Sales Partner and Google Cloud Platform Partner status, Artefact is uniquely positioned to provide the expertise and tools required to leverage Meridian effectively. Our vision is that we consider MMM so important that we help brands implement it in-house and have set up a Marketing ROI Center of Excellence (CoE) to further support and advance marketing measurement capabilities.

Session 1: The mROI Triangle – Connecting MMM, Incrementality Testing, and Attribution

The event kicked off with a session hosted by Sid Mohan, Director Data Science, and myself, where we delved into the mROI triangle, focusing on the interplay between MMM, incrementality testing, and attribution. Each method serves a distinct role:

  • MMM provides strategic insights on optimal budget allocation and channel effectiveness, typically on a monthly or quarterly basis.
  • Attribution supports operational decisions with high-frequency, granular insights (daily or weekly).
  • Incrementality testing bridges the two, calibrating MMM and informing the best attribution model for continuous media optimization.

Beyond methodology, we emphasized the importance of business adoption and trust. Marketing measurement is most impactful when results serve as a single source of truth, translated into actionable insights for various stakeholders. Advertisers should adopt a continuous learning agenda, experimenting with media strategies to refine MMM and attribution models over time.

Live Q&A: Insights into Marketing Measurement Adoption and Confidence

A live Q&A session, moderated by Jan-Hendrik Fleury from Artefact, engaged the audience with real-time survey responses on key marketing measurement challenges:

  • Only 58% of attendees’ companies currently use MMM, compared to 84% leveraging first-party data analytics and 98% relying on platform-based attribution.
  • 44% of respondents were not confident or neutral about their company’s ability to measure marketing ROI, with only 5% expressing high confidence.
  • The biggest challenge in MMM adoption was model accuracy and trust, highlighting the need for expert translators who can bridge the gap between technical models and marketing realities.
  • 67% of respondents indicated their (intended) MMM solution is built in-house, while only 5% rely on SaaS solutions. This underscores the significance of open-source tools like Meridian in facilitating in-house MMM implementation.

Session 2: Google’s Meridian and Its Key Innovations

In the second session, Boudewijn Beks and Sam Bailey from Google introduced Meridian, highlighting why MMM is more crucial than ever:

  • Organizations prioritizing MMM are 2x more likely to exceed revenue goals by 10% or more (Google & Deloitte, 2023).
  • MMM is the only privacy-first measurement solution capable of analyzing all channels (digital and offline) and all sales touchpoints (on- and offline).
  • With increasing media complexity, growing demand for ROI proof from CFOs, and privacy challenges from data deprecation, Meridian provides a transparent, actionable, and educational MMM solution.

Meridian’s Key Innovations:

  • Calibration with Incrementality Testing: Users can set priors directly on ROI, leveraging test results to enhance model accuracy.
  • Paid Search Modeling with Google Query Volume (GQV): Unlike traditional MMMs that struggle with causality in Paid Search, Meridian integrates GQV to isolate the true impact of search ads on sales.
  • Reach & Frequency-Based Measurement: Instead of relying on impression-based modeling, Meridian accounts for how many unique users saw an ad and how often, providing optimal frequency recommendations for better media planning. For example, 1000 impressions could mean that 1000 unique users each saw the ad once, or that 100 users saw the ad 10 times. Meridian’s approach ensures a more accurate understanding of ad exposure and effectiveness, helping advertisers determine the optimal frequency for their campaigns.

Conclusion: A New Era in Marketing Measurement

The event underscored the need for more sophisticated, privacy-friendly marketing measurement solutions. With Meridian, companies now have an accessible, transparent, and effective framework to elevate their MMM efforts. As an early adopter and key partner in this space, Artefact is committed to helping businesses harness Meridian’s potential to make smarter, data-driven marketing decisions.

If you’re looking to explore how Meridian can enhance your marketing measurement strategy, reach out to our team at Artefact.