Matched market testing is a type of marketing experiment used to measure the incremental impact of a campaign by comparing the performance of two or more similar geographic regions. One region (the test market) is exposed to the campaign, while the other region (the control market) is not. By analyzing the differences in outcomes between these matched markets, marketers can determine the additional value generated by the campaign—often referred to as incremental lift.
Matched market testing is a powerful tool for assessing the effectiveness of marketing efforts in a real-world setting. It’s commonly used for regional campaigns, product launches, or to evaluate the impact of promotions and advertisements in specific areas. By comparing markets with similar characteristics, brands can gain a clear understanding of their campaign’s true impact and adjust their strategies accordingly.
At Rockerbox, matched market testing is an integral part of our unified measurement approach. When combined with other methods such as Marketing Mix Modeling (MMM) and Multi-Touch Attribution (MTA), matched market testing provides a holistic view of campaign performance, helping brands make more informed, data-driven decisions. Rockerbox also offers professional services to guide you through the matched market testing process, ensuring you gain accurate insights and actionable results.
Why Matched Market Testing is Important
- Measure Real-World Campaign Impact
Matched market testing allows marketers to see how a campaign performs in a real-world environment. By comparing two regions that are alike in terms of demographics and other characteristics, you can determine whether your marketing is truly driving incremental sales, conversions, or engagement.
- Reduce Bias and Improve Accuracy
Matched market testing helps reduce bias by ensuring that the test and control markets are similar in nature, making the comparison more reliable. This ensures that any differences in performance can be attributed to the campaign, rather than external factors.
- Optimize Regional Campaigns
For brands running campaigns across multiple regions, matched market testing helps identify which areas respond best to your marketing efforts. This allows you to allocate resources more efficiently and optimize your budget for the regions that drive the most incremental value.
- Validate Marketing Strategies
Matched market testing provides a reliable method for validating your marketing strategies. By understanding which tactics work best in specific regions, you can refine your approach and ensure that your campaigns are driving real growth.
How Matched Market Testing Works
Matched market testing involves selecting two or more regions that are similar in demographics, behavior, and size. Here’s how the process works:
- Selecting Test and Control Markets
The first step in matched market testing is selecting the test and control markets. The test market is where your campaign will be active, and the control market is a similar region that will not be exposed to the campaign. At Rockerbox, we help you identify regions that are as similar as possible in terms of demographics, purchasing behavior, and other relevant factors. This ensures the results are accurate and meaningful.
- Running the Campaign in the Test Market
Once the markets are selected, the campaign is launched in the test market. Throughout the campaign, Rockerbox tracks key performance metrics, such as sales, conversions, and engagement, in both the test and control markets.
- Comparing Results Across Markets
After the campaign has run for a sufficient period, we compare the results between the test market (where the campaign was active) and the control market (where no campaign was running). This comparison allows us to measure the incremental lift generated by the campaign in the test market.
- Analyzing Incremental Lift
Rockerbox’s team of experts analyzes the data to calculate the incremental impact of your campaign. We look at metrics such as incremental ROAS (iROAS), incremental Cost Per Order (iCPO), and other key performance indicators to understand how much additional value your campaign has generated.
- Integrating Results with MMM and MTA
The results from your matched market test are integrated with your MMM and MTA models for a comprehensive view of how your campaign performed across all channels and markets. This allows you to understand both regional performance and overall campaign effectiveness.
How Rockerbox Helps You Run Matched Market Tests
At Rockerbox, we specialize in helping brands run matched market tests that deliver accurate, actionable insights. Here’s how we support your matched market testing efforts:
- Expert Market Selection
Choosing the right test and control markets is crucial to the success of a matched market test. Rockerbox’s professional services team works closely with you to select geographic regions that are as similar as possible. This ensures that the comparison is fair and that the results accurately reflect the impact of your marketing campaign.
- Test Setup and Management
Rockerbox manages the entire matched market testing process from start to finish. We ensure that the test and control markets are properly selected and that the campaign is executed with precision. Throughout the test, we track the necessary data to ensure you receive accurate, reliable insights.
- Detailed Data Analysis
After the test is complete, Rockerbox’s experts analyze the results to determine the incremental lift generated by your campaign. We provide detailed insights into how your campaign performed in the test market versus the control market, offering a clear picture of the incremental impact.
- Unified Measurement Integration
The results from your matched market test are integrated with your broader MMM and MTA models. This unified measurement approach ensures you have a complete, data-driven understanding of how your marketing is performing at both a regional and overall level.
- Ongoing Optimization with Expert Support
Rockerbox doesn’t just stop at delivering results. Our team works with you to turn the insights gained from your matched market test into actionable strategies. We help you optimize your marketing campaigns, allocate budgets more effectively, and maximize incremental growth in future efforts.
Benefits of Matched Market Testing for Marketing Optimization
- Accurate Regional Insights
Matched market testing provides detailed insights into how your marketing performs in different regions. This helps you understand which geographic areas respond best to your campaigns and allows you to optimize future efforts based on real-world data.
- Optimize Marketing Spend
By identifying the regions where your campaign is generating the most incremental lift, matched market testing allows you to allocate your marketing budget more efficiently. You can reduce waste and invest more in the areas that deliver the highest return on ad spend.
- Validate and Refine Strategies
Matched market testing gives you a reliable way to validate your marketing strategies. By comparing performance in different markets, you can identify which tactics are most effective and refine your approach to maximize results.
- Improve Campaign Performance
By understanding which markets and tactics are driving incremental growth, you can continuously improve your campaigns. Matched market testing helps you refine your messaging, targeting, and creative to deliver better results over time.
Why Choose Rockerbox for Matched Market Testing?
At Rockerbox, we provide a comprehensive approach to matched market testing, combining expert guidance with advanced measurement tools to ensure your campaigns deliver real results.
- Unified Measurement Approach
Matched market testing is part of Rockerbox’s unified measurement solution, which also includes MMM and MTA models. This comprehensive approach ensures you have a complete view of your marketing performance across all regions and channels.
- Expert Support and Guidance
Our professional services team works with you to design and implement matched market tests that deliver actionable insights. We provide hands-on support throughout the process, ensuring that your tests are set up for success and that the results are accurate.
- Actionable Insights for Continuous Optimization
Rockerbox doesn’t just deliver data—we provide insights that help you refine your marketing strategy. We work with you to turn the results of your matched market test into actionable strategies that drive better performance in future campaigns.
- Long-Term Support for Success
From test setup to strategy refinement, Rockerbox provides ongoing support throughout the matched market testing process. Our goal is to help you optimize your marketing efforts for long-term success.
FAQs About Matched Market Testing
What is matched market testing in marketing?
Matched market testing is a marketing experiment that compares the performance of two similar geographic regions—one where a campaign is active (test market) and one where no campaign is running (control market)—to measure the incremental impact of the campaign.
How does Rockerbox help with matched market testing?
Rockerbox helps brands design, execute, and analyze matched market tests to accurately measure the impact of their marketing campaigns. We provide expert support throughout the process and integrate the results with MMM and MTA models for a unified view of performance.
Why is matched market testing important?
Matched market testing is important because it helps brands understand the real-world impact of their campaigns by isolating the incremental value generated in specific regions. This allows marketers to optimize their strategies, improve campaign performance, and allocate resources more effectively.