Ever since Apple gave users the right to turn off tracking in the iOS14 update, marketers have been scrambling for a measurement solution. In our Reforge piece on “The Attribution Stack”, we wrote in depth about all of the methods you can use to evaluate the effectiveness of your ad dollars, and we think it’s a good thing that marketers are taking a more holistic approach to attribution.
One method often paired with Marketing Mix Modeling (MMM) as the solution to the ‘iOS14 problem’ is geo-testing, also known as Geo Lift studies. It’s an incredibly intuitive approach that works across a wide variety of channels. It’s also appealing because it’s privacy friendly and platform independent, using only aggregated data (just like MMM), so it’s robust to whatever happens to digital tracking and privacy legislation in the future.
There’s more to it than that: you have to be careful with how you define regions, what regions you select, and how long you run the test (more on that later). However this is the sort of thing any executive can understand and trust. If sales were 50% higher in regions A, B, & C (the test group with ads) than regions D, E, & F (the control group with no ads), and everything else stayed the same, then advertising must have driven those incremental sales.