In the world of advertising, platforms like Meta (formerly Facebook) have faced skepticism for “grading their own homework.” However, brands and agencies are now considering solutions like Meta’s Ron, which offers media mix modeling (MMM) to provide insights and clarity.
But Meta is not alone in developing MMM technology. Amazon is also utilizing MMM to understand the relationship between its sales data and overall marketing expenditure. Google, too, is eyeing MMM, although it has yet to release a specific product.
John McDermott, a freelance writer, joins us to discuss the nuances of each platform’s approach and the implications for the ad tech industry. While Meta is the most advanced in developing MMM, Amazon’s solution is still in the works, and Google is in an exploratory phase.
Buyers have found Meta’s Ron helpful in their advertising efforts. However, they approach the results with caution, as they are not entirely confident in Meta’s ability to accurately measure non-digital channels like radio.
The driving force behind the development of MMM tools tech platforms is the need to navigate data privacy concerns. With limited access to user-level data due to Apple’s ATT and Safari cookie policies, platforms have had to innovate. MMM, with its channel-level analysis, is becoming an alternative to user-level conversion tracking, which is increasingly limited.
The adoption of MMM Meta, Amazon, and potentially Google reflects the industry’s shift towards finding new ways to analyze and optimize marketing efforts within the confines of evolving privacy regulations.
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