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Teresa Lewis
SR. CONSULTANT, ADVANCED MEASUREMENT SERVICES,
ADOBE
CHICAGO, IL ~ JUNE 20 - 21, 2019 | DIGIMARCONMIDWEST.COM
#DigiMarConMidwest
Do You Even Lift?:
Incrementality & Lift Testing
Explained
KEYNOTE
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Why Lift?
Discuss best practices
Learn how to get started
2
A G E N D A
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
WHY DO WE ADVERTISE?
3
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Digital Attribution is Often Based on Correlation
4
+ =
$$$
$$$
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Digital Attribution is Often Based on Correlation
5
+ =
$$$
$$$
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Correlation Does Not Equal Causation
6
+ =
$$$
$$$
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Audience Bias
LIKELIHOODTO
BUY
Loyalist Shopping
Around
Competitor’s
Loyalist
Beware of Correlated Measurement Biases
Media Cost
IMPRESSION
VOLUME
1x
Rate
2x
Rate
50%
Conversion Rate
Low Rate Bias
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Correlation vs. Causation
8
Tactic Ad Spend
Buyers After
Ad Exposure
CPA
TACTIC A
TACTIC B
$100
$100
$12.50
$20
Incremental
Buyers
Cost Per
Incremental
$100
$25
Performance Optimization Fallacy in Action
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
The Bigger Investment Picture
9
$283
$333
$385
$436
$479
$518
45.9%
50.1%
53.6%
56.6%
58.8%
60.5%
$0
$100
$200
$300
$400
$500
20%
30%
40%
50%
60%
70%
2018 2019 2020 2021 2022 2023
Global Digital Ad Spending (In Billions)
% of Total Media Spend
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 10
START LIFTING!
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 11
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Control Groups Provide a North Star
12
Natural Converters Actual Lift Driven by Ad
% Ad Conversions - % Control
Conversions
=
Actual Ad Lift
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Define the Goal of Your Lift Test
Set your objective and only test 1 dependent & independent
variable at a time.
Dependent Variable
Will delivering ads
to my lapsed
customers cause
them to purchase?
Learning Objective Independent Variable
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Define the Goal of Your Lift Test
%
L
I
F
T
E
X
P
O
S
E
D
C
O
N
T
R
O
L
+ =
+ =
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Do Lift Test Sizing Before You Start
Assess Feasibility & Estimate Samples Needed for a Statistically
Successful Test
Establish
Behavior
Baseline
Estimate Sample
Sizes
Benchmark
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Sample Size Considerations
16
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
0 0.2 0.4 0.6 0.8 1
As conversion rate goes up,
sample size needed goes
down
Conversion Rate
SampleSize(Uniques)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
1 1.05 1.1 1.15 1.2 1.25
As lift goes up, sample
size needed goes down
Lift
SampleSize(Uniques)
As exposed ratio goes
up, sample size needed
goes up
0
1,000
2,000
3,000
4,000
5,000
6,000
3 5 7 9 11
Exposed Ratio
SampleSize(Uniques)
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Ensure Your Samples are Randomized
In-Market
Audience
In-Market
Audience
In-Market- Test Brand’s
Loyalists
In-Market- Competitor’s
Loyalists
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Ensure Your Samples are Randomized
In-Market- Test Brand’s Loyalists
In-Market- Competitor’s
Loyalists
In-Market
Audience
In-Market
Audience
Contr
ol
Contr
ol
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Ensure Your Samples are Randomized
In-Market
Audience
In-Market
Audience
In-Market- Test Brand’s Loyalists
In-Market- Competitor’s
Loyalists
Expos
ed
Expos
ed
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Ensure Your Samples are Randomized
In-Market
Audience
Expos
ed
Control Expos
ed
Control
In-Market- Test Brand’s Loyalists
In-Market- Competitor’s
Loyalists
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Verify Efficacy of Randomization
Experiment Designer
Randomization
Expos
ed
Control
Control Group Efficacy Test
Non-Test
Brand Event
Control
Conversion
Rate
Exposed
Conversion
Rate
% Difference
Purchase Rate
at
Retailer
13% 13% No Difference
Purchase Rate
at Home Supply
Store
.17% .17% No Difference
Purchase Rate
at QSR
1% 1% No Difference
% Women in
Group
49% 49% No Difference
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Remember You Are Not a Scientist- This is
Advertising
Isolate your independent variable, while still running an ad
campaign.
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Action & Build off Your Results
Incorporate Learnings Into Your Buying Best
Practices
23
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 24
Redbox AdPlacebo Ad
Setup of Redbox Lift Test
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 25
1 Create control groups directly in
the Advertising Cloud buying
platform
2 Randomizes audiences at the ad
call for immediately clean
sample groups
3 Real-time results with control to
adjust and optimize strategies
for constant improvement
Experiment Designer
Methodology
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 26
The Incrementality Results
Cart Abandoners 1 Cart Abandoners 2
Movie Rental ROAS
Placebo Exposed
LIFT 33%
LIFT 80%
© 2019 Adobe. All Rights Reserved. Adobe Confidential. 27
1 Redbox ran media against only
the highest ROAS audience to
capitalize on media
effectiveness
2 Additional audiences to be
tested throughout 2019 using the
same methodology
3 Redbox has a clear test and
learn framework moving forward
to vet new campaign tactics
© 2019 Adobe. All Rights Reserved. Adobe Confidential.
Correlation doesn’t equal causation- beware of biases
Gain internal alignment & start lifting to measure
causality
Incorporate best practices to avoid pitfalls
Action off your results
28
K E Y
T A K E A W A Y S
Do You Even Lift?: Incrementality & Lift Testing Explained - Teresa Lewis, Adobe
Do You Even Lift?: Incrementality & Lift Testing Explained - Teresa Lewis, Adobe

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Do You Even Lift?: Incrementality & Lift Testing Explained - Teresa Lewis, Adobe

  • 1. Teresa Lewis SR. CONSULTANT, ADVANCED MEASUREMENT SERVICES, ADOBE CHICAGO, IL ~ JUNE 20 - 21, 2019 | DIGIMARCONMIDWEST.COM #DigiMarConMidwest Do You Even Lift?: Incrementality & Lift Testing Explained KEYNOTE
  • 2. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Why Lift? Discuss best practices Learn how to get started 2 A G E N D A
  • 3. © 2019 Adobe. All Rights Reserved. Adobe Confidential. WHY DO WE ADVERTISE? 3
  • 4. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Digital Attribution is Often Based on Correlation 4 + = $$$ $$$
  • 5. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Digital Attribution is Often Based on Correlation 5 + = $$$ $$$
  • 6. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Correlation Does Not Equal Causation 6 + = $$$ $$$
  • 7. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Audience Bias LIKELIHOODTO BUY Loyalist Shopping Around Competitor’s Loyalist Beware of Correlated Measurement Biases Media Cost IMPRESSION VOLUME 1x Rate 2x Rate 50% Conversion Rate Low Rate Bias
  • 8. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Correlation vs. Causation 8 Tactic Ad Spend Buyers After Ad Exposure CPA TACTIC A TACTIC B $100 $100 $12.50 $20 Incremental Buyers Cost Per Incremental $100 $25 Performance Optimization Fallacy in Action
  • 9. © 2019 Adobe. All Rights Reserved. Adobe Confidential. The Bigger Investment Picture 9 $283 $333 $385 $436 $479 $518 45.9% 50.1% 53.6% 56.6% 58.8% 60.5% $0 $100 $200 $300 $400 $500 20% 30% 40% 50% 60% 70% 2018 2019 2020 2021 2022 2023 Global Digital Ad Spending (In Billions) % of Total Media Spend
  • 10. © 2019 Adobe. All Rights Reserved. Adobe Confidential. 10 START LIFTING!
  • 11. © 2019 Adobe. All Rights Reserved. Adobe Confidential. 11
  • 12. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Control Groups Provide a North Star 12 Natural Converters Actual Lift Driven by Ad % Ad Conversions - % Control Conversions = Actual Ad Lift
  • 13. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Define the Goal of Your Lift Test Set your objective and only test 1 dependent & independent variable at a time. Dependent Variable Will delivering ads to my lapsed customers cause them to purchase? Learning Objective Independent Variable
  • 14. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Define the Goal of Your Lift Test % L I F T E X P O S E D C O N T R O L + = + =
  • 15. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Do Lift Test Sizing Before You Start Assess Feasibility & Estimate Samples Needed for a Statistically Successful Test Establish Behavior Baseline Estimate Sample Sizes Benchmark
  • 16. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Sample Size Considerations 16 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 0 0.2 0.4 0.6 0.8 1 As conversion rate goes up, sample size needed goes down Conversion Rate SampleSize(Uniques) 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 1 1.05 1.1 1.15 1.2 1.25 As lift goes up, sample size needed goes down Lift SampleSize(Uniques) As exposed ratio goes up, sample size needed goes up 0 1,000 2,000 3,000 4,000 5,000 6,000 3 5 7 9 11 Exposed Ratio SampleSize(Uniques)
  • 17. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Ensure Your Samples are Randomized In-Market Audience In-Market Audience In-Market- Test Brand’s Loyalists In-Market- Competitor’s Loyalists
  • 18. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Ensure Your Samples are Randomized In-Market- Test Brand’s Loyalists In-Market- Competitor’s Loyalists In-Market Audience In-Market Audience Contr ol Contr ol
  • 19. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Ensure Your Samples are Randomized In-Market Audience In-Market Audience In-Market- Test Brand’s Loyalists In-Market- Competitor’s Loyalists Expos ed Expos ed
  • 20. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Ensure Your Samples are Randomized In-Market Audience Expos ed Control Expos ed Control In-Market- Test Brand’s Loyalists In-Market- Competitor’s Loyalists
  • 21. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Verify Efficacy of Randomization Experiment Designer Randomization Expos ed Control Control Group Efficacy Test Non-Test Brand Event Control Conversion Rate Exposed Conversion Rate % Difference Purchase Rate at Retailer 13% 13% No Difference Purchase Rate at Home Supply Store .17% .17% No Difference Purchase Rate at QSR 1% 1% No Difference % Women in Group 49% 49% No Difference
  • 22. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Remember You Are Not a Scientist- This is Advertising Isolate your independent variable, while still running an ad campaign.
  • 23. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Action & Build off Your Results Incorporate Learnings Into Your Buying Best Practices 23
  • 24. © 2019 Adobe. All Rights Reserved. Adobe Confidential. 24 Redbox AdPlacebo Ad Setup of Redbox Lift Test
  • 25. © 2019 Adobe. All Rights Reserved. Adobe Confidential. 25 1 Create control groups directly in the Advertising Cloud buying platform 2 Randomizes audiences at the ad call for immediately clean sample groups 3 Real-time results with control to adjust and optimize strategies for constant improvement Experiment Designer Methodology
  • 26. © 2019 Adobe. All Rights Reserved. Adobe Confidential. 26 The Incrementality Results Cart Abandoners 1 Cart Abandoners 2 Movie Rental ROAS Placebo Exposed LIFT 33% LIFT 80%
  • 27. © 2019 Adobe. All Rights Reserved. Adobe Confidential. 27 1 Redbox ran media against only the highest ROAS audience to capitalize on media effectiveness 2 Additional audiences to be tested throughout 2019 using the same methodology 3 Redbox has a clear test and learn framework moving forward to vet new campaign tactics
  • 28. © 2019 Adobe. All Rights Reserved. Adobe Confidential. Correlation doesn’t equal causation- beware of biases Gain internal alignment & start lifting to measure causality Incorporate best practices to avoid pitfalls Action off your results 28 K E Y T A K E A W A Y S