Geo AB Test
AB test on different geo zones
AB Tests are powerful tools to analyze the effectiveness of a media plan. But it must follow defined steps to reach its goal.
What are geo AB tests
We define a control group (one or several geographical zones) and an exposed group. The control group will not see the ad, while the exposed group will.
We then analyze the results of both zones to determine if the advertising has an impact on sales or revenue.
Several steps
If the process seems quite easy, we must take precautions
Step 1
Design control & exposed groups
Design control & exposed groups
We design groups that are similar to each other. The temptation to choose two very different markets is high, but this can bias the analysis. If external events occur in one market and not the other, you may need to start the process over again.
Analysis
We create a test plan that includes:
- Length of the test: Should it last a few days, weeks, or months?
- Strength of desired effects: If you’re looking for a +100% effect on sales, the test duration will likely be short.
Step 2
Analysis
Step 3
Modelisation of both groups
Modelisation of both groups
We forecast data for both groups, first verifying the model’s accuracy on the control group, and then analyzing whether real sales increase in the exposed group.
Compute the increment
When the test is complete, we analyze the results and calculate the incremental value of your marketing actions.
Step 4
Compute the increment
Bonus : calibration of the Marketing Mix Model
