Business Videos

Google Meridian | Incremental Outcome, ROI, mROI, and Response Curves

The video introduces Google Meridian’s core metrics—incremental outcome, ROI, response curves, and marginal ROI (MROI)—as a framework for evaluating ad‑spend effectiveness. Using a shoe‑store example, Jeff shows $10 k spent on video generated $150 k in sales, while the model predicts $125 k would have occurred without the channel. The $25 k lift is the incremental outcome, yielding an ROI of 2.5 (or $250 returned per dollar). He emphasizes that ROI is a historical grade, whereas response curves map spend to outcome and expose the saturation point where returns flatten. Meridian builds these curves by scaling historical spend across time and geography while holding other media constant, allowing marketers to see how each additional dollar performs. The takeaway is practical: use ROI to benchmark past performance, consult response curves to spot diminishing returns, and rely on MROI to decide whether the next dollar should stay in the channel or be reallocated, thereby maximizing overall marketing efficiency.