IAB Australia has launched ‘Evolution in Market Mix Modelling’, the fourth module in its Marketing Measurement Innovation Series which has been developed by IAB Australia’s Ad Effectiveness Council. The module explores what is driving the increased use of MMM and how the technique is evolving with advances in computing power and machine learning to provide faster and more granular insights on advertising performance.
Market Mix Modelling (MMM) is a statistical analysis of aggregate sales, advertising and marketing data, and data on other factors outside a marketer’s control, that quantifies the impact of different marketing channels and tactics (the marketing mix) on financial outcomes over time.
IAB industry engagements have shown that over the last couple of years advertisers and agencies are increasing their usage of resilient measurement techniques, such as Market Mix Modelling, to address Apple’s move to App Tracking Transparency, the retirement of third-party cookies and the imminent changes to privacy legislation.
The ‘Marketing Measurement Innovation Series’ seeks to highlight that, marketers, agencies, media owners and vendors are getting ahead of these changes and adjusting their measurement in response to signal loss, with innovations occurring across the industry to protect the insights that businesses need to grow.
Natalie Stanbury, Research Director at IAB Australia commented “While measurement is often seen as a challenge, our objective is to help marketers and agencies alike understand that insightful assessment of marketing effectiveness and campaign performance can continue in a privacy compliant way. The series highlights real case studies and includes practical examples of how we can move marketing measurement beyond the cookie.”
The first three modules of the innovation series include ‘Mapping the Future of Marketing Measurement’, ‘First-party Data Unlocking Measurement Capabilities’ and ‘Advances in AI and Machine Learning Powering Marketing Measurement’. Two further modules are scheduled to be published in 2024 including ‘Continuing test and learn experiments’ and ‘Developments in ad attention measurement’.
IAB’s Ad Effectiveness Council includes representatives from media owners, data agencies, media agencies, research companies, tech vendors and advertisers. The Council is chaired by Yasmin Sanders of SambaTV with members drawn from Azerion, Bench, Brand Metrics, Carsales, Cint, Dentsu, Digital Remedy, Double Verify, Experian, Google, Hatched Media, IAS, Insighten, Kantar, Lifesight, Meta, Milton Data, Mutinex, News Corp, Nielsen, Nine Entertainment, On Device Research, PHD, Pinterst, Playground xyz, Publicis, REA Group, Ryvalmedia, SevenWest Media, TikTok, TotallyAwesomeTV and IAB Australia.