13 Aug 2024
Marketing Mix Modeling | 4 min read

The Future of MMM: What Will Set Providers Apart?

Rockerbox - Ashley McAlpin Written by Ashley McAlpin
on August 13, 2024

The landscape of Marketing Mix Modeling (MMM) is undergoing a transformation. As open-source models gain traction, the competitive landscape is shifting, raising important questions about what will differentiate MMM providers in the long run. Our CEO Ron Jacobson took to LinkedIn to introduce this topic—and the response was interesting.

 

 

We’re entering a new phase where MMM models might become commoditized, similar to what’s happening in the AI space with models like Llama challenging the dominance of OpenAI and Anthropic.

“From Meridian to Robyn to PyMC, the MMM open-source models are being heavily invested in,” Ron wrote in the post. “Yes, there will continue to be very effective non-open source options. But in the long term, many companies will either directly use or fork open-source solutions and be able to provide best-in-class models.”

Given this trend, the question then becomes: What will set one MMM provider apart from another? We believe it comes down to three key factors: methodology flexibility, making sense of outputs, and logistics.

1. Methodology Flexibility

As Ron pointed out, the winning MMM provider of the future won’t just be an MMM provider. “It will be a platform that makes it simple and easy for marketers to switch across different methodologies—whether it’s attribution, MMM, experiments, surveys, or benchmarks.” This flexibility is crucial because starting with a methodology is the wrong approach. Instead, the right approach is to begin with the question that needs answering and then back into the appropriate methodology. Marketers need a product that allows them to quickly pivot to the right methodology without needing to find, onboard, and learn a new vendor.

In an era where marketing strategies must be adaptive, the ability to switch methodologies seamlessly is invaluable. It’s not about being the best at just one thing; it’s about being versatile enough to tackle whatever challenges (and questions) arise.

2. Making Sense of Outputs

The output from an MMM model can be complex, and making sense of it often requires more than just a software solution. “There is a need for humans who understand the underlying business mechanics to really make sense of an MMM output,” Ron wrote. This is one reason why agencies are leaning into MMM so heavily. Beyond justifying their ad spend, MMM enables them to leverage their people capital. “In this way, MMM is acting as technology enabling services,” he adds.

The human element in interpreting MMM results will continue to be a critical differentiator. Providers that combine advanced technology with expert services will stand out in a crowded market.

3. Logistics

Finally, the logistics of running MMM models cannot be overlooked. “MMM requires continual work,” he emphasized. While it may be relatively easy to pull in core channels like Meta, Google, and TikTok and refresh models, that’s not enough for larger companies. These organizations often have a much wider range of channels, constituents, geographies, and outcomes to consider when building a model. “The best MMM providers recognize this challenge, embrace it, and become logistical machines,” Ron concluded.

In the future, the ability to handle the logistical complexity of MMM at scale will be a key factor that sets the top providers apart. It’s not just about the quality of the model; it’s about how effectively and efficiently it can be implemented across diverse and complex business environments.

So where do we go from here?

As the world of MMM continues to evolve, the focus will shift from the models themselves to how they are deployed and interpreted. Flexibility in methodology, the ability to make sense of complex outputs, and mastering the logistics of implementation will be the key differentiators for MMM providers in the years to come. As Ron said, “The MMM landscape is changing, and those who adapt to these new dynamics will lead the way.”

In this new era, it’s not just about building the best model—it’s about building the best platform to deliver, interpret, and act on those models. And that’s why we’re confident that Rockerbox will continue to be at the forefront of the MMM wave.

Want to see our MMM platform live? Grab a demo here.

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