How are incrementality experiments different from A/B experiments?

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

Correct Answer:

• They determine the impact of ads on a consumer’s decision to convert or not.

Explanation: Incrementality experiments differentiate from A/B experiments by assessing the influence of ads on a consumer’s decision to either convert or not. In these experiments, control and treatment groups’ behaviors are compared to measure the impact of a specific variable. The control group in an incrementality experiment, known as a holdback group, does not view the ad, unlike in A/B experiments where two ad versions are tested to see which performs better without a holdback group.