Why does our Marketing Mix Modeling platform typically show three ROIs?
1️⃣ ROAS reported by Google Analytics 4
2️⃣ ROAS reported by Ad platforms
3️⃣ ROI estimated by MMM
Why should you compare these three metrics with each other? Isn't the whole point of MMM to have a single-source-of-truth for marketing ROI?Yes, it is. Still, there's several benefits from doing this:
✅ Digital marketing teams are used to tracking GA4- and Ad platform-reported KPIs. When adopting MMM, they will for sure compare MMM results to the metrics they are used to.
✅ Comparing these three metrics side by side makes them more understandable. For example, you typically see that each ad platform is reporting significantly higher ROAS compared to ROI from MMM. This is expected, because MMM aims at estimating the true incrementality of each marketing activity, whereas ad platform -reported conversions are not all incremental.
✅ You can analyse incrementality factors by comparing MMM-reported incremental conversions to Ad platform -reported conversions.
✅ Making the three metrics comparable is a surprisingly challenging data processing effort. Especially when you get to the ad channel -level (e.g. FB prospecting, FB retargeting, PMax..) and campaign-level within ad platforms. We have automated it, so we want to provide the results to our customers so that they don't need to spend time on reinventing the wheel.
Below is an example summary screenshot from our platform:
