Geo-based experiments, known as GeoX, operate by assigning non-overlapping geographic regions randomly to either a control or treatment group.
- Geo experiments use random geographic regions assigned to control group.
- Geo experiments use random geographic regions assigned to test group.
- Geo experiments use overlapping geographic regions that are assigned to a control or treatment group.
- Geo experiments use non-overlapping geographic regions that are randomly assigned to a control or treatment group.
The correct answer is: Geo experiments use non-overlapping geographic regions that are randomly assigned to a control or treatment group.
Explanation: Geo experiments, commonly referred to as GeoX, implement non-overlapping geographic regions, such as city or postal codes, that are randomly assigned to control or treatment groups. This delineation allows for the clear attribution of any increase in success metrics between the groups solely to the advertising efforts. Businesses can employ GeoX to assess the effectiveness of ad modifications by contrasting with a control group. As results emerge, the volume of offline conversions, be it store visits or sales, can be evaluated, linking the observed uplift directly to advertising expenditure.