Are Open-Source MMMs for You?
Marketing Mix Modeling (MMM) has become an indispensable tool for marketers looking to measure the impact of their various advertising channels. As privacy regulations shift and third-party cookies disappear, more businesses are turning to MMM as a privacy-friendly way to analyze marketing performance.
One option that’s gained popularity is open-source MMM models. These free to use models can seem like a great solution, especially for companies with tight budgets. However, like anything in business, they come with both benefits and challenges. If you're in mobile marketing or a related industry, it’s important to weigh the pros and cons before deciding if an open-source MMM model is the right choice for you. Here is what we’ve come to expect from open-source models:
Pros of Open-Source MMM Models
Free to Download: Open-source MMM models don’t require a hefty upfront investment, making them attractive for startups and smaller businesses that may not have the budget for proprietary solutions.
Transparency and Customization: Since the code is publicly available, businesses can modify and fine-tune the model to fit their unique marketing needs. This flexibility allows for greater control over how data is analyzed and interpreted.
Privacy Compliance: Unlike methods that rely on tracking individuals, MMM uses aggregated data, making it a privacy-safe solution that aligns with evolving data protection laws.
Cons of Open-Source MMM Models
Hidden Costs: While open-source MMM models may not require an upfront payment, they aren’t truly “free.” They require skilled data scientists to set up and maintain, computing power to process large datasets, and ongoing upkeep to ensure accuracy. Without the right expertise, companies may also end up making misinformed decisions, leading to costly mistakes.
High Technical Barrier: MMM relies on complex statistical models that require a deep understanding of data science. If you don’t have a technical background (or someone on your team who does), implementing and maintaining an open-source MMM model can be overwhelming.
Time-Consuming Implementation: Setting up an MMM model isn’t quick. Data needs to be collected, cleaned, structured, and tested before any insights can be generated. This process can take months. Time that many marketing teams simply don’t have.
Limited Granularity and Real-Time Insights: Open-source MMM models rely on historical data, meaning they can’t provide real-time insights. This lag makes it difficult to adjust campaigns quickly, which is especially problematic in fast-moving industries like mobile apps.
No Built-in Incrementality Measurement: MMM helps measure the effectiveness of marketing channels, but it doesn’t automatically tell you which tactics are truly driving incremental performance. Without proper incrementality measurement, businesses risk misallocating their budgets.
Open-source MMM models can be useful for businesses with in-house data science expertise, but they come with steep learning curves, hidden costs, and limited real-time capabilities. For marketers who want accurate, actionable insights (without the headache of managing an open-source MMM model) MetricWorks offers a next-generation solution that eliminates the complexities while delivering superior results. Here is what we offer:
Seamless Integration and Experienced Guidance: Our solution is designed for seamless integration with your current MMP and compiles your data into one unified hub, and can be set up within 24 hours. No migrations or SDKs needed. You also get expert guidance from our data scientists who will work with you directly to customize the model for what you need, and serve as an extension of your team.
Real-Time, Granular Insights: Unlike traditional MMM models that cohort data on a monthly or quarterly basis, MetricWorks delivers daily-cohorted metrics, allowing you to optimize campaigns in real-time instead of waiting for historical reports.
Built-In Incrementality Measurement: Our platform directly measures incrementality, ensuring that you understand the true impact of each marketing channel rather than just seeing correlations.
Proven Accuracy: By combining the best elements of MMM with incrementality testing, MetricWorks delivers precise, privacy-safe measurement, giving you confidence in your marketing decisions.
Want to see how MetricWorks can transform your marketing strategy?
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