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L4 · Agents in marketing operations9 min read

AI-era measurement: incrementality and marketing mix models

As AI automates buying and creative, the question "what actually worked?" gets harder — and more important. Platform dashboards and last-click attribution tell you what happened next to an ad, not what the ad caused.

The classic warning

In a large field experiment published as an NBER working paper, economists Tom Blake, Chris Nosko and Steven Tadelis turned off eBay's brand-keyword search ads in some regions. They found brand-keyword ads had no measurable short-term benefit — the people clicking would have found eBay anyway — and that frequent users, who drove most ad costs, were not influenced by the ads. Attribution had credited ads for sales they didn't cause.

Three tools that measure causation

  1. Experiments and holdouts: switch a channel or campaign off (or on) for a random group of people or regions and compare. The gold standard for a specific question.
  2. Marketing mix models (MMM): statistical models of how spend across channels relates to sales over time, accounting for seasonality, price and promotions. Good for budget allocation across channels. Google made Meridian, its open-source MMM, available to everyone in January 2025; other open-source and commercial options exist.
  3. Calibration: use experiment results to tune the MMM, so the model matches what tests show.

Where AI helps measurement

  • Faster data preparation and model runs.
  • Plain-language explanations of results for non-analysts.
  • Scenario planning: "what if we move 10% from search to video?"

Where AI makes measurement harder

  • Automated platforms change many things at once.
  • Thousands of creative variants dilute sample sizes.
  • Platforms reporting their own success.

A practical program

Run at least one incrementality test per quarter on a big channel; maintain an MMM updated quarterly; reconcile both with finance.

What this means for the CMO

Your credibility with the CFO depends on measurement finance believes. Commit to incrementality, not attribution, as the standard for big budget decisions.

Ask for a measurement plan: which tests run this quarter, when the MMM is refreshed, and how results change the budget. Agree the method with finance before results arrive.

Be ready for results that challenge favourite channels. The value of incrementality is that it tells you what to stop as well as what to scale, and that credibility is what protects your budget when money is tight.

Diagram

AI-era measurement: incrementality and marketing mix models

Real example

In a large field experiment at eBay, Blake, Nosko and Tadelis (NBER working paper w20171) found brand-keyword search ads had no measurable short-term benefit. Google made Meridian, its open-source marketing mix model, available to everyone on January 29, 2025. Source: Blake, Nosko & Tadelis — Consumer heterogeneity and paid search effectiveness: a large-scale field experiment (NBER w20171) ↗ · Google — Meridian, the open-source marketing mix model, is now available to everyone (Jan 29, 2025) ↗

Use it

Quick check · 3 questions

  1. 1.What did the eBay experiment find about brand-keyword search ads?

  2. 2.What is a marketing mix model best used for?

  3. 3.Why calibrate an MMM with experiments?

0 of 3 answered

Sources

Last reviewed 2026-10-01.