How are incrementality experiments different from A/B experiments?

Incrementality experiments differ from A/B experiments because they measure the true impact of ads on whether a consumer chooses to convert or not.

• They typically require a smaller sample size and less sophisticated statistical analysis.
• They both require a holdback group to determine which version of an ad performs better.
• They measure the relative effectiveness of different versions of a marketing campaign.
• They determine the impact of ads on a consumer’s decision to convert or not.

Explanation:

Incrementality experiments differ from A/B tests because they focus on measuring whether advertising actually causes a consumer to convert. These experiments compare the behavior of a treatment group that is exposed to ads with a control (holdback) group that does not see the ads at all. This comparison reveals the true incremental impact of advertising. In contrast, A/B experiments typically test two variations of an ad against each other to see which performs better, without using a true no-ad holdback group.