Product Updates

Drive measurable growth in ROAS with Geo Experiments

Published On: 2024-01-18


Sometimes, to shake up the marketing mix, you need to think outside the box, or, in this case, outside the traditional A/B testing framework. Perhaps you want to focus on specific geographies where you have high value orders but lesser customers? That's where Geo-testing could prove to be a weapon in your arsenal. that marks the start of a new chapter in marketing impact for this year.

Beyond conventional tests & experiments

Unlike traditional A/B tests that compare user groups, Lifesight Geo-testing takes a comprehensive approach using specific geographical regions identified basis geo-lift for the specified KPI to establish control and treatment groups. You can choose to scale up your current inputs into the campaign or use the holdout methodology to study the absolute impact of your campaign. In these experiments, treatment groups receive specific marketing efforts or a larger share of a specific marketing input (eg. ad budget on a specific channel), while control groups continue with business as usual. Over a defined period, we meticulously monitor the impact of these different treatments on response metrics. The goal is to unveil a substantial, incremental lift – a testament to the power of causality in marketing.

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Geo-testing addresses several challenges posed by traditional A/B testing, particularly in understanding customer conversion and its true incremental impact:

  • Attribution Accuracy: Traditional A/B testing offers comparative insights, but it falls short in providing a holistic view of whether a campaign attracts new customers or merely shifts them from other channels.
  • Practicality in Measurement: In scenarios where direct response metrics are hard to come by, establishing control and test groups can be impractical. Imagine trying to prevent only a portion of a city's population from seeing a billboard – it's simply not feasible.
  • Privacy-compliant and Transparent: Geo-Testing doesn't just offer versatility across different channels, it also aligns with contemporary privacy standards. Focusing on geographic regions instead of individual user data, it provides a transparent and privacy-compliant way to measure and enhance the effectiveness of marketing campaigns. This methodology also aligns with the current privacy standards. By focusing on geographic regions rather than individual user data, Geo-Testing offers a transparent and privacy-compliant way to measure and enhance the effectiveness of marketing campaigns.

Getting the most value from Geo-testing

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To make the most of Geo-testing, ensure you focus on the following:

  • Market Selection: Choose test and control markets based on customer composition, marketing channel performance, conversion rates, growth rates, and market size. To make this step easier, Lifesight recommends geographies based on incremental Geo lift identified in initial stages of the experiment.
  • Sample Size: Ensure the selected areas are large enough to yield meaningful data, with sufficient conversions and ad spend.
  • Timing: Avoid periods with potential seasonal or macroeconomic influences or significant marketing changes.
  • Longitudinal Analysis: Compare test and holdout groups over multiple periods, both before and after making changes to your marketing mix, to assess both immediate and long-term impacts.

Closing the loop of measurements

In essence, Lifesight simplifies the complexity of Geo testing. By aggregating this data into granular-detailed report for each treatment group, we enhance the precision of measurement while continuously seeking ways to boost the sensitivity of geo tests without compromising on the validity of inferences. Ultimately, the detailed insights provided by Lifesight on your test’s performance offer a clear window into the actual impact of your advertising spend and ensure that your marketing decisions are data-driven and accurate.

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Drive measurable growth in ROAS with Geo Experiments