What is a geo-based experiment?
- Geo experiments use random geographic regions assigned to control group.
- Geo experiments use overlapping geographic regions that are assigned to a control or treatment group.
- Geo experiments use random geographic regions assigned to test group.
- Geo experiments use non-overlapping geographic regions that are randomly assigned to a control or treatment group.
Explanation:
Geo experiments, commonly known as GeoX, involve non-overlapping geographic regions, like city or postal codes, which are randomly designated as control or treatment groups. By doing this, any rise in success metrics between these groups can be solely attributed to the ad campaign. Employing GeoX lets businesses gauge the impact of ad modifications by juxtaposing them against a control. Once data is collected, one can evaluate offline conversion rates, such as store sales or visits, attributing the uplift exclusively to ad expenditure.