Audio Advertising Undervalued in Marketing Mix Models, IAB Report Warns
Marketing mix models (MMMs) are having a moment. As privacy restrictions tighten, cookies crumble, and marketers search for dependable ways to understand performance across channels, MMMs are being hailed as a cornerstone of modern measurement.
But according to a new report from the Interactive Advertising Bureau (IAB), there’s an uncomfortable truth beneath the surface: audio advertising continues to be systematically underrepresented — and undervalued — inside these models.
More troubling still, audio is not alone.
The IAB’s findings suggest that no media channel is being fully or fairly captured in today’s marketing mix models, raising urgent questions about how confidently brands can rely on MMM outputs to guide billions of dollars in advertising investment.
Marketing Mix Models Are Growing — But Still Falling Short
MMMs are designed to help marketers understand how different channels contribute to sales, brand lift, or other business outcomes. Unlike user-level attribution, they rely on aggregated data and statistical modeling, making them increasingly attractive in a privacy-first world.
However, adoption does not equal effectiveness.
The IAB report, based on a survey of more than 400 senior marketing, analytics, and planning leaders across U.S. brands and agencies, reveals that despite widespread usage, MMMs often lack the coverage, consistency, and timeliness needed to be considered truly “decision-grade.”
“Alarmingly, no media channel is fully represented in marketing mix models,” the report states.
That reality has direct consequences for how budgets are allocated — and which channels win or lose investment.
Among respondents who say they have some “line of sight” into individual channels within their MMMs, audio-related formats consistently rank among the most underrepresented.
Audio Channels Struggling for Visibility in MMMs
According to the IAB:
39% of MMM users say podcasts are underrepresented
36% say streaming audio does not receive adequate credit
46% say AM/FM radio is insufficiently captured
These numbers place audio alongside other traditionally harder-to-measure channels, despite its proven reach, frequency, and brand impact.
The issue is not whether audio works — it’s whether the models are capable of seeing it.
Why Undercounting Audio Skews Marketing Decisions
Measurement gaps are not merely academic concerns. When MMMs fail to fully account for audio exposure and outcomes, the ripple effects can be significant.
The Hidden Cost of Incomplete Modeling
The IAB warns that underrepresentation leads to:
Distorted ROI calculations
Lower confidence in model outputs
Systematic bias toward channels perceived as “easier to measure”
Overinvestment in lower-impact digital formats
Underinvestment in channels delivering incremental reach
“The result is a myopic view of performance that reinforces bias toward more measurable channels like display, search, and social — rather than those driving true incremental impact,” the report notes.
For audio sellers, this creates a familiar squeeze: strong performance in the real world, weaker visibility inside the model.
Structural Challenges Holding Audio Back in MMMs
The IAB report points to foundational issues that continue to plague measurement systems — issues that disproportionately affect audio.
Key Barriers to Accurate Audio Measurement
Fragmented data sources across broadcast, streaming, and podcast platforms
Inconsistent exposure definitions
Long reporting lags
Difficulty reconciling reach, frequency, and outcomes
Limited standardization across vendors and platforms
When models are built on incomplete or delayed inputs, channels like audio are more likely to be undervalued — even when they are driving meaningful lift.
“Marketing Mix Models Don’t Reflect Modern Media Consumption”
One of the most striking conclusions in the IAB report is its blunt assessment of current measurement practices.
“Marketing mix models fail to reflect modern media consumption.”
Despite today’s audiences fluidly moving between broadcast radio, podcasts, smart speakers, and streaming platforms, many MMMs still struggle to capture audio’s full ecosystem.
As a result, marketing teams spend excessive time stitching together fragmented data, rather than generating actionable insights.
Buy-Side Frustration Is Growing
While MMMs are widely used, confidence in their outputs is far from universal.
The report finds that:
Up to 75% of buy-side users believe advanced measurement approaches underperform
Key shortcomings include:
Rigor
Timeliness
Trustworthiness
Operational efficiency
In other words, MMMs are everywhere — but not always trusted.
For audio, the lack of consistent coverage makes it harder to defend budgets when models become the final arbiter of performance.
Project Eidos: IAB’s Push to Fix Measurement at the Foundation
The report was released at the IAB Annual Leadership Meeting, where CEO David Cohen announced the launch of Project Eidos — an industry-wide initiative aimed at fundamentally modernizing advertising measurement.
“It’s time to address the foundational issues that have quietly undermined measurement for years,” Cohen said.
For audio, Project Eidos represents a potential turning point — if it delivers the unglamorous but essential infrastructure that allows the channel to be consistently “counted.”
Can Artificial Intelligence Fix What MMMs Miss?
The IAB believes artificial intelligence could play a transformative role in closing measurement gaps.
AI’s Potential Impact on Marketing Measurement
The report estimates AI-driven improvements could unlock:
$32 billion in total value over 1–2 years
$26 billion in increased media investment
$6 billion in productivity gains
AI could allow marketers to:
Run MMMs two to three times more frequently
Shift from annual or quarterly models to monthly updates
Adjust strategies in near real time
Why More Frequent Modeling Matters for Audio
Historically, MMMs have often been treated as annual verdicts — snapshots that fail to capture short-term lift from promotions, seasonal campaigns, or flighted audio schedules.
A shift to monthly modeling could dramatically change that dynamic.
Benefits of Faster MMM Cadence for Audio
Better visibility into campaign-specific lift
Improved validation of incremental reach
Reduced risk of performance being “averaged out”
Stronger case for sustained investment
For audio advertisers, more frequent modeling could mean fewer blind spots and more opportunities to prove value.
AI Is Not a Silver Bullet
Despite the optimism, IAB leaders caution against viewing AI as a quick fix.
“Past band-aid approaches have allowed underlying issues to get worse over time,” Eng said. “We need to tackle problems that are systemic and foundational.”
In other words, AI can accelerate progress — but only if the data ecosystem itself is repaired.
What Audio Needs to Be Fairly Modeled
For audio to receive appropriate credit in MMMs, the industry must focus on fundamentals rather than surface-level solutions.
Key Requirements for Audio Measurement Parity
Consistent exposure definitions
Standardized inputs across platforms
Clear exposure-to-outcome linkages
Interoperable data frameworks
Industry-wide alignment on measurement language
Project Eidos will ultimately be judged by whether it delivers these building blocks — not just promises.
The Stakes for Advertisers and Publishers
As brands increasingly rely on MMMs to allocate budgets, measurement visibility is becoming synonymous with commercial viability.
Channels that fail to appear clearly in models risk losing share — regardless of real-world performance.
For audio publishers, platforms, and networks, the next phase of measurement reform could determine whether audio remains undervalued or finally receives credit proportional to its impact.
The Bottom Line
Marketing mix models are evolving, but they are not yet keeping pace with how audiences actually consume media. Audio advertising — spanning broadcast radio, streaming, and podcasts — continues to suffer from underrepresentation that distorts ROI calculations and biases investment decisions.
The IAB’s State of Data report and the launch of Project Eidos signal a growing industry acknowledgment that the problem is systemic, not channel-specific.
Whether AI, standardization, and cross-industry collaboration can finally bring audio into full view remains one of the most important measurement questions facing marketers today.
