Geo Experiment
Understand the need for geo test and how it can help improve your marketing optimization.
Geo-testing is a method used to measure the incremental impact of marketing across different regions. Regions are divided into two groups: the treatment group, which receives the marketing intervention, and the control group, which does not. Performance is then tracked over time to assess the incremental impact of a channel.
Why should you run a geo test?
Geo Experiments use geographical locations to create test and control groups to evaluate the impact of marketing.
Key Components in Geo tests:
- Control Regions: Areas where no changes are made, serving as a baseline.
- Test Regions: Areas where marketing interventions are applied.
Geo-testing includes two approaches:
- Holdout experiment: Marketing is withheld from the control group to establish a baseline.
- Scale-up experiment: After positive initial results, the campaign is expanded with more budget for the treatment group.
Benefits of Geo-testing:
- Market insights: Understand how regional differences impact campaign performance.
- Data-driven decisions: Make informed choices based on actual results, not assumptions.
- Risk reduction: Test changes in a controlled setting to minimize risk.
- Improved ROI: Optimize budget allocation by identifying successful strategies in specific regions.
Updated 6 months ago