Measuring Ad Effectiveness Using Geo Experiments
Abstract: Advertisers have a fundamental need to quantify the
effectiveness of their advertising. For search ad spend, this information provides a
basis for formulating strategies related to bidding, budgeting, and campaign design.
One approach that Google has successfully employed to measure advertising effectiveness
is geo experiments. In these experiments, non-overlapping geographic regions are
randomly assigned to a control or treatment condition, and each region realizes its
assigned condition through the use of geo-targeted advertising. This paper describes
the application of geo experiments and demon- strates that they are conceptually
simple, have a systematic and effective design process, and provide results that are
easy to interpret.