Next in Media Emily and Mike talk about the ad world's new obsession with models, and whether brands are too trusting of AI ad buying
Jun 2, 2025
Emily Riley, a savvy consultant in ad tech, joins Mike to dive deep into the resurgence of Marketing Mix Models (MMMs). They discuss how MMMs are becoming more affordable thanks to AI, shifting the landscape for advertisers. The duo debates the trust brands place in AI-driven ad buying versus traditional methods, questioning the control larger firms should maintain. Additionally, they explore the evolving content consumption habits of younger generations favoring platforms like TikTok, pushing media companies to adapt their strategies.
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MMMs Are Back But Not A Silver Bullet
- Marketing Mix Models (MMMs) are resurging because advances in AI and cheaper tools make them accessible beyond giant advertisers.
- MMMs give macro allocation guidance but lack granularity and incrementality answers, so they can't be the sole measurement tool.
James And James Found Platform AI Lacking
- Mike recounts a furniture brand (James and James) that found platform AI optimizers underperformed in MMM analysis.
- The brand discovered Meta and Google's tools weren't prioritizing their goals despite heavy spend.
Validate Platform Optimizers With Tests
- Do not blindly hand media budgets to platform AI if you're a large, complex advertiser with agencies and legacy channels.
- Use MMMs, incrementality tests, and spot geographic experiments to validate what truly drives lift.