IAB Australia unites the MMM world for how-to guide
IAB Australia has released a how-to guide for those looking to explore the market mix modelling landscape, bringing together 12 of the country’s active MMM players to explain their products and methodologies to the wider sector of marketers, agencies, and media owners.
The 141-page report was prepared by IAB’s ad effectiveness council, and features the expertise of a number of competitors in the MMM space, including Mutinex, Meta Open Source (Robyn), Kantar, Google (Meridian), Annalect, Gain Theory, Analytic Edge, Lifesight, Analytic Partners, Prophet, Recast, and Circana.
It lays out the different methodologies of the companies, which range from econometric models to machine learning. For each company, the report goes through the validation practices, data requirements, refresh cadences, and decision-support capabilities, with numerous examples throughout.
It provides a detailed roadmap of each company’s wares, while explaining in broader stroke how to implement MMM into your business, as well as the key metrics to focus on.
Annalect
The report explains that the participating MMM vendors have “outlined the process undertaken with clients to turn modelled data into insights and business actions [and] how the model integrate with other marketing measurement tools, along with any independent audits or accreditation received, and demonstration of data through case studies, charts, reports.”
In addition to the report, IAB has also issued an eight-stage checklist to lead marketers through the process of implementing MMM.
The checklist guides marketers through the strategic foundations, measurement framework, data readiness, stakeholder alignment, vendor and model selection, comparing and testing models, implementation and validation, and actionability and integration.
IAB research director Natalie Stanbury said in a release accompanying the report: “When implemented thoughtfully, MMM enables marketers to optimise their investment, enhance strategic decision-making, and demonstrate the value of marketing in driving business growth.
“However, it’s essential that marketers find the right partner for their business needs and understand the differences in offerings available in market, researching and comparing MMM vendors based on their specific business needs and criteria.”
Despite being broadly promotional for the market mix modelling businesses included in the directory, the report warns that MMM should not be used in isolation, and recommends it functions as “part of a broader measurement framework, working in tandem with attribution models, experimentation, and platform-specific analytics.”
It also advises against marketers dabbling with MMM as a one-off exercise, instead suggesting constant refinement, and the use of experts to measure results and adapt where needed.
The report explains: “MMM is not a new technique but has experienced a revival and evolution in recent years. Outcome-based measurement provided by MMM ties media performance to the metrics that are crucial to a business’ growth.
“It enables marketers to assess the performance of their media investments with clearly defined financial related metrics while accounting for external influences such as pricing, promotions, competition, and economic conditions.”
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