HERE’S A COST-EFFECTIVE WAY TO TELL IF YOUR DIGITAL ADS ARE WORKING

Summary from the TLDR Marketing newsletter

This study proposes a solution using randomized controlled trials (RCTs) combined with predictive models to estimate ad impact. RCTs are when a randomly chosen group of consumers is shown an ad and is compared with a randomly chosen control group that doesn’t see the ad. The difference in response between these groups reflects the ad’s impact. The study shows that even a small number of RCTs can effectively predict the return on advertising dollars.