Dinesh Ramachandran Google and others are pushing open-source marketing mix modeling (MMM), but is it truly a breakthrough, or just another way to dominate marketers’ budgets?
In 2024, U.S. marketers are laser-focused on improving their marketing mix modeling (MMM), with 61% aiming to enhance its speed and accuracy, according to an eMarketer study. As digital advertising becomes more complex, the demand for tools that help measure media performance across channels has never been higher. Enter open-source marketing mix modeling (MMM), an emerging solution spearheaded by major players like Google, Amazon, and Meta.
In January, Google launched Meridian, an open-source MMM tool that promises to empower marketers with better insights into how their media investments are performing. This shift to open-source is part of a broader movement, as more industry giants champion open-source tools to drive adoption and innovation. For marketers, the allure is clear—open-source platforms offer more flexibility, transparency, and, importantly, a sense of control over their data.
However, some critics argue that open-source MMM may not be as revolutionary as it seems. With the rise of large language models (LLMs) and AI-powered agents, there’s concern that these tools could be another way for digital giants to lock in users, subtly nudging marketers further into their ecosystems. By leveraging user privacy and data security as selling points, companies like Google could inadvertently build new barriers that limit competition.
As the open-source trend accelerates, it’s important for marketers to carefully assess whether these tools truly provide more autonomy or if they’re simply the next evolution in a cycle of tech-driven dependence.
The push for open-source MMM could democratize data-driven marketing, but marketers must remain vigilant in navigating its potential pitfalls. Staying informed will be key in leveraging these tools for long-term success.
