Marginal ROI across All Channels #1024
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Is it possible to obtain marginal ROI across all channels (not individual channels) from budget optimizer? The optimization report only has total ROI. The return object from optimizer.BudgetOptimizer(mmm).optimize seems to contain marginal ROI of individual channels but not across all channels. |
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Hello @rajeshpaleti999 , Thank you for contacting us! No, you can't get a single, total marginal ROI across all channels from the budget optimizer. The reason for this is that the calculation for a single, combined marginal ROI would require the model to make an arbitrary assumption about how the "next dollar" of spend is allocated across all paid channels. This can cause confusion and isn't a practical or useful metric. The optimizer's purpose is to find the most efficient way to allocate a budget . Budget is increased on channels with high mROI and reduced on channels with low mROI, which generally brings the channel-level mROI values closer together. It does not necessarily make the mROI values equal due to optimization budget constraints. The best way to understand your post-optimization return on the next dollar spent, is to look at the channel-level mROI values. The maximum mROI value is the maximum return you could earn on your next dollar spent. Feel free to reach out for any further queries or feedback regarding Meridian. Google Meridian Support Team |
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Hello @rajeshpaleti999 ,
Thank you for contacting us!
No, you can't get a single, total marginal ROI across all channels from the budget optimizer.
The reason for this is that the calculation for a single, combined marginal ROI would require the model to make an arbitrary assumption about how the "next dollar" of spend is allocated across all paid channels. This can cause confusion and isn't a practical or useful metric. The optimizer's purpose is to find the most efficient way to allocate a budget . Budget is increased on channels with high mROI and reduced on channels with low mROI, which generally brings the channel-level mROI values closer together. It does not necessarily make the mR…