Have these cheaper MMmodels just made the technology attractive for smaller companies or are they cutting into business for firms like Analytic Partners

It’s a mix of both: cheaper open-source models and agile SaaS tools have expanded the total market down to mid-market and SMBs, and they have put real margin and market-share pressure on traditional consultancies like Analytic Partners.

Rather than destroying enterprise consultancies, this dynamic has split the market into two distinct tiers:

1. Expanding the Market (SMB & Mid-Market) Historically, a $200k+ price tag for a single consultancy-led MMM project made the technology completely inaccessible for a company spending under $5 million annually on ads. Open-source frameworks (Google Meridian, Meta Robyn) and low-cost SaaS solutions (like Recast or Prescient AI) unlocked an entirely new tier of customers—mid-market e-commerce, local brands, and scaling DTC companies—who previously relied solely on basic Google Analytics or Meta pixel attribution.
2. Cannibalizing Traditional Consultancies For established firms, open-source and modern SaaS setups are definitely cutting into their traditional “pure MMM” business.

• Loss of the “Black Box” Premium: Consultancies used to charge six-figure fees largely for the complex mathematical processing. Because Big Tech made those algorithms free, open-source, and standardized, client data teams can now question why they should pay millions annually for the math alone.
• Speed Disadvantage: Traditional consultancies took 3 to 6 months to output static, quarterly reports. Modern software updates weekly or continuously. Mid-market and digitally savvy enterprise clients have fled consultancies for these always-on SaaS platforms.

How Firms Like Analytic Partners Are Adapting

To avoid getting eaten by cheaper technology, high-end measurement consultancies are shifting their strategy in two ways:

• Expanding to “Commercial Analytics”: Firms like Analytic Partners are framing basic MMM as a commodity. They are moving up the value chain to incorporate pricing strategy, inventory constraints, global supply chain inputs, offline retail negotiations, and macroeconomic forecasting—areas where an out-of-the-box Python model falls short.
• Hybrid “Software + Service” Models: Instead of manual labor, enterprise vendors now build their own SaaS front-ends (like Analytic Partners’ GPS Enterprise) powered by AI and benchmark data. They pitch high-touch strategic consulting, custom data pipelines, and white-glove executive translation alongside the software.

Ultimately, free tools created a massive new market of first-time MMM users while forcing legacy firms to abandon basic attribution and pivot toward broader executive consulting.