Marketing Metrics

Control Group

A control group is a randomly selected segment of users or data points that receive no experimental treatment, serving as the baseline against which test groups are measured. In marketing experimentation, control groups enable marketers to isolate the true causal impact of campaigns, creative changes, or other interventions by comparing outcomes between exposed and unexposed audiences under otherwise identical conditions.

Definition

A control group is a randomly selected segment of users or data points that receive no experimental treatment, serving as the baseline against which test groups are measured. In marketing experimentation, control groups enable marketers to isolate the true causal impact of campaigns, creative changes, or other interventions by comparing outcomes between exposed and unexposed audiences under otherwise identical conditions.

Examples

Withholding 10% of users from a campaign to measure true incremental impact

Using geographic holdouts to measure regional campaign effectiveness

Implementing PSA (Public Service Announcement) tests as active controls

Creating persistent holdout groups for long-term incrementality measurement

Calculation

How to Calculate

Calculates the relative performance difference between test and control groups. Positive values indicate the treatment had a beneficial effect, while negative values suggest the treatment underperformed the control.

Formula

Lift = (Test - Control) / Control

Unit of Measurement

%

Operation Type

divide

Formula Variables

TestMetric value from test group
ControlMetric value from control group

Comparison

Related Metrics

Statistical Significance

Statistical significance indicates whether an observed difference between variants in an experiment is likely to be due to random chance or represents a genuine effect. In advertising, it helps determine if differences in key metrics like CTR, conversion rate, or ROAS between ad variants or campaigns represent real performance differences rather than random fluctuations. This is crucial for making data-driven optimization decisions and avoiding false conclusions based on temporary variations.

Best Practices

  • Ensure sufficient sample size for statistical validity
  • Use true randomization for group assignment
  • Maintain clean separation between test and control groups
  • Document all external factors that might influence results
  • Consider using multiple control group types for robust validation

Related Terms

A/B Testing

Related term

similar

Incrementality

Related term

similar

Statistical Significance

Related term

component