Learn how to test the incrementality of paid media channels with insights from Nick Stoltz, Chief Strategy Officer at Measured. Dive into the details of random controlled trials, power analysis, and sample size requirements. Explore the challenges and benefits of incrementality testing, the impact of market upheavals, and the evolving strategies in response to iOS 14.5. Discover the importance of hypothesis frameworks, holdout tests, and scale tests for measuring ad impact on sales. Embrace a culture of experimentation in marketing to drive business growth and stay ahead of the competition.
Implementing incrementality testing requires proactive API monitoring to ensure accurate data collection and continuous adjustments for result validity.
Constructing geo matching tests with sophisticated data models, not random, can provide powerful insights with statistical confidence and reduced business risk.
Incrementality testing offers strategic insights beyond mixed models, helping marketers refine strategies, maximize returns, and stay competitive in the market.
Deep dives
Building a Culture of Experimentation in Marketing
Creating a culture of experimentation in marketing is essential for driving business growth. An HBR article emphasizes the power of building an experimental learning agenda and aligning it with strategic goals. By focusing on testing significant questions that can transform the business, brands can establish a competitive advantage.
Challenges in Implementing Incrementality Testing
Implementing incrementality testing poses challenges in monitoring and analyzing campaigns. Marketers need to be proactive in API monitoring to ensure accurate data collection. Testing is not just about statistics; it requires continuous monitoring and adjustments to maintain the validity of the test results.
Methodology for Effective Geo Matching Tests
Methods like geo matching tests, while not random, can be powerful if constructed with sophisticated data science models. Care must be taken in selecting and predicting test and control markets to ensure statistical confidence and minimize business risk. Utilizing data science tools can automate the analysis process and drive valuable insights.
Strategic Insights from Incrementality Testing
Incrementality testing offers strategic insights that go beyond traditional mixed models. By running hundreds of tests and analyzing platform performance, marketers can derive valuable information to refine strategies and maximize returns. Strategic actions based on incrementality results help brands stay ahead in a competitive landscape.
Significance of Testing Agility and Learning Agenda
Agility in testing and maintaining a continuous learning agenda are crucial for driving business value. Data-driven decisions, based on rigorous testing and monitoring, help in optimizing marketing strategies and adapting to changing market dynamics. Building a testing culture enhances decision-making and provides a competitive edge in the industry.
Have you ever been told by some smug data scientist that you just need to run a randomized controlled trial to understand the true incrementality of a paid media channel? Just run a power analysis to understand your sample size requirements, right? Were you left with questions about specifically how to do that?
In this episode, we talked with Nick Stoltz, Chief Strategy Officer at Measured - an incrementality testing and media optimization platform. We go beyond the "what" and "why" of testing, and dive into the details of the "how."