8.5
Incrementality / Geo-Lift Testing
A randomised experiment that withholds spend from matched markets or audiences in order to measure what that spend actually caused.
Field-experiment practice; canonical demonstration Blake, Nosko & Tadelis, Econometrica (2015)
What it does
Randomly withholds spend from matched markets or audiences to measure what it actually caused. The only honest measurement of causal contribution.
When it breaks
Needs sample, time and patience. The statistical power to detect a small effect is absent from most budgets, so “no effect” usually means “we could not measure it”.
Case
eBay ran a large randomised shutoff of paid search. Turning off brand keywords recovered 99.5% of the lost paid clicks through organic search: essentially zero incremental value. For non-brand keywords the true experimental ROI was −63%, against naive observational estimates of +4,173%.
Blake, Nosko & Tadelis · eBay paid search experiment ↗In the wild
Unchecked · not part of the tier
What people have written about this tool in the last twelve months. A machine found these and nobody has read them. Everything above this line was checked by hand.
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