We’ve spent the last 4 years building tools to understand our clients’ total user acquisition ROAS including algorithms to support IAP, ad revenue, and subscription business models. Today, we’re delighted to announce the launch of AlgoLift Organic Lift, available as an additional service to AlgoLift Intelligence and AlgoLift Intelligent Automation clients. This product estimates the impact of paid advertising on organic revenue and is the final piece in understanding paid UA ROAS.
With AlgoLift Organic Lift, companies can now understand the impact any paid UA channel at scale can have on organic installs at the channel and platform cohort. Organic Lift produces a pROAS (predicted ROAS) calculation that accounts for the extra revenue generated by extra Organic installs generated through paid traffic.
Why we built Organic Lift and how we built it
Our clients wanted to know if paid channels increase organic installs. More importantly, they wanted to know which channels provide a higher positive impact on organic installs (Organic Lift).
To solve this, we collaborated with the IDE Lab at MIT to test a variety of statistical techniques for determining causal relationships between signals. These included difference-in-difference (DiD) and regression discontinuity in time (RDiT). We then sampled 25 billion paid impressions and over 5 billion records of install and revenue data to tease out the causal impact of marketing spend on organic installs. We ran a live, multi-month system identification test during which spend was perturbed and organic installs measured carefully. The known but random (uncorrelated to itself and the environment) input signal allowed us to statistically confirm our organic lift model.
The product allows our clients to simply and accurately determine the extra revenue from organic installs generated by their paid marketing. By simply clicking the “Organic Lift” toggle on our portal, the ROAS will update to include the expected extra organic revenue generated by marketing spend to that cohort view. AlgoLift Intelligent Automation programmatically accounts for organic lift when making decisions.
What do I need to get Organic Lift?
AlgoLift Organic Lift is available to AlgoLift Intelligence and AlgoLift Intelligent Automation clients. The following data is required to make the calculation:
- Spend data integration from all your major marketing sources
- Install and revenue data for all paid and organic traffic
What’s next?
We are always improving! Marketers have always speculated that increasing spend on Facebook may impact on Google performance (and vice versa). Our data scientists are researching cross-network effects using some of the tools and techniques developed for Organic Lift. Our goal is to give our clients a holistic view of ROAS in response to marketing decisions and in the next couple of weeks we’ll be releasing our Intelligent Budget tool — an algorithmically driven monthly cross-channel budgeting tool to help finance, analytics and UA teams maximize channel level UA investments.
Curious to learn more? Email: info@algolift.com
