How to obtain the carry-over effect from each marketing channel #281
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Since the ads has the carry-over (or lagging) effect, how does Meridian MMM models the carry-over effect and in the results how to get the carry-over effect for each marketing channel? For instance, I'd like to know how many days the effect of the Google PLA ads last? Thanks! |
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You can see how Meridian models the carryover effect here. It is modeled using the Adstock function. At a high-level, a media channel has a composite "impression stock" at a given time, say, t. And this stock is a weighted-average of impressions from time t going back L periods (where L is the chosen max_lag parameter). The default value for this max_lag parameter is 8 weeks. Within the Adstock function, the effect of media in previous periods decays at rate "alpha" (the geometric decay rate, as described here). Media from periods further back in time than L periods do not, by definition, have an effect on the KPI/outcome in the current period. You can use functions such as the one here to compute the Adstock and Hill functions. |
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You can see how Meridian models the carryover effect here. It is modeled using the Adstock function. At a high-level, a media channel has a composite "impression stock" at a given time, say, t. And this stock is a weighted-average of impressions from time t going back L periods (where L is the chosen max_lag parameter). The default value for this max_lag parameter is 8 weeks.
Within the Adstock function, the effect of media in previous periods decays at rate "alpha" (the geometric decay rate, as described here). Media from periods further back in time than L periods do not, by definition, have an effect on the KPI/outcome in the current period.
You can use functions such as the one here t…