Meta’s MCP Server and Similar MCPs Could Create the Premier League of MMM Vendors
In my last post, I talked about Marketing Measurement’s foray into MCPs and whether it is an unclear bet?
Most discussions on MCP focus on the obvious benefit: AI can now talk directly to marketing platforms.
But I think a bigger opportunity lies elsewhere. Here is my crazy idea π
π The Real Opportunity: Ad Set Level Measurement
Today, most MMMs operate at a relatively aggregated level – Channel level.
MCP potentially opens a future where MMM vendors can access highly granular advertising data directly from platforms.
Imagine building MMMs at the level of:
β’ Ad Sets
β’ Audiences
β’ Creatives
β’ Placements
β’ Objectives
Aryma Labs is the first company to crack this granularity puzzle as early as 2024 through our patent pending GTA approach. We already model at such granular levels !!
Some of our clients instead of asking : “How much should I spend on Paid Social?”
They ask:
Which 20 ad sets should receive the next $100,000?
This has already been a game changer.
π MCP and Creation of Premier League
Now imagine a large brand working with multiple MMM vendors simultaneously on the same measurement problem – a MMM.
Each vendor’s MMM recommendations are exposed through MCP and connected to execution platforms.
The brand then chooses:
β’ Implement Vendor A only
β’ Implement Vendor B only
β’ Implement a blended strategy
Then observe the changes (lift or decline) in performance through in-platform metrics.
For the first time, competing MMM models can be tested against each other in production !!
π MMM Becomes a Competitive Sport
Today, many MMM vendors make optimization recommendations.
Very few are systematically scored on whether those recommendations actually worked.
Here is my Future workflow:
Step 1:
Vendor submits budget and bidding recommendations.
Step 2:
Recommendations are executed.
Step 3:
Incremental outcomes are measured.
Step 4:
Performance scoreboards are generated.
Step 5:
Top performers stay. Bottom performers get relegated.
π What Gets Measured Gets Improved
I propose a scoreboard tracking of sorts that details out:
β Revenue lift generated
β Incremental ROAS achieved
β Budget efficiency gains
β Prediction accuracy
β Recommendation hit rate
Every vendor would know their recommendations are being continuously evaluated.
For decades, marketing measurement has largely measured marketers.
Soon, we may start measuring the measurement companies themselves !!
And when that happens, the industry may finally discover which modeling paradigm really works – Frequentist or Bayesian, Does Hierarchical modeling works or not, Which vendors’ MMM algorithm really moves the needle.
MCP may not revolutionize MMM because it connects systems.
It may revolutionize MMM because it may creates accountability.
We are building some cool products in this regard. Stay tuned π