Some of these issues are exacerbated by recent developments in MROI measurement that pose new requirements for data and capabilities: While marketers once relied more on deterministic attribution (such as attributing a click on a Facebook ad directly to a purchase), increasing privacy regulations have limited this one-to-one tracking, which (while intuitive) also systematically undervalues upper-funnel and cross-channel effects. Best-in-class marketers are embracing probabilistic measurement methods that estimate the incremental impact of marketing through statistical modeling. In practice, this often means combining marketing mix modeling (MMM), which applies statistical methods to estimate the contribution of each marketing channel, with lift studies, which validate marketing incrementality through controlled experiments. Especially when combining outputs from both MMM and testing, marketers gain a more accurate and holistic view of true incrementality, unlocking the insights required by the CMO to maximize growth through data-driven decision-making. Establishing the right operating model for MROI A suitable operating model for MROI is required to obtain the right insights in the right quality, as well as the right backers to support its implementation. Leading marketers typically operate with a centralized marketing measurement center of excellence that owns the relevant data and measurement tools, establishes measurement guidelines and KPIs, and acts as thought leader within the organization (“owners”). Execution is often decentralized, either in dedicated data and analytics squads or directly in the respective channel teams (“doers”). Finally, consistent upskilling across the entire organization (even beyond marketing) is required to ensure all relevant stakeholders have the required capabilities to leverage measurement insights to inform business decisions (“users”). Our survey indicates that KPI determination is done centrally in around 60 percent of cases. While certain secondary indicators can be set by individual teams, key goals and standards that ultimately also feed into the finance function are best defined centrally (Exhibit 14). “ Budget allocation has always been a critical focus for us, and we’ve made significant strides in recent years. In the past couple of years, we’ve invested heavily in marketing mix modeling (MMM), which has allowed us to bring transparency and facts to the discussion. MMM allows us to measure the granular impact of different levers— whether it’s communication, distribution, or pricing—and has been transformative in helping us justify marketing investments to the finance team or rebalance budget from one department to another. We’ve also started using micro-measurements and micro-tests to understand what drives business outcomes. For instance, we can now pinpoint the exact value of a promotion at a specific time of year. This level of granularity has been a game-changer to optimize our marketing tactics and proves the ROI of the investment we receive.” — Benjamin Faveris, CMO, Orange France 32 Past forward: The modern rethinking of marketing’s core