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GeoLift: Models

Overview​

GeoLift uses three complementary causal inference models. Running all three (default "geolift" / "all" mode) gives stronger confidence than relying on any single method.

ModelApproachBest for
ANCOVARegression-based difference-in-differencesClear pre/post comparison with parallel trends
Synthetic DiDWeighted synthetic counterfactualBuilding a close pre-period match from multiple controls
BSTSBayesian structural time seriesTrend + seasonality forecasting with uncertainty bands

All three produce the same core outputs: total lift, relative lift, confidence interval, and p-value.


1) ANCOVA (Difference-in-Differences)​

How it works​

ANCOVA compares how the treatment market changed before vs after the intervention, relative to how control markets changed over the same periods.

It uses a regression with:

  • treatment indicator,
  • post-intervention indicator,
  • and their interaction (the lift estimate).

Strengths​

  • Interpretable and widely used in experimentation
  • Explicit parallel-trends check in the pre-period
  • Control markets can be weighted by similarity

Safeguards​

  • Flags when pre-period trends diverge between test and controls
  • Uses cluster-robust standard errors for geo-level data

Plain-language summary​

"Did the treatment market grow more than controls after the campaign started, beyond what we'd expect from normal movement?"


2) Synthetic DiD (Synthetic Difference-in-Differences)​

How it works​

Synthetic DiD builds a synthetic version of the treatment market by blending multiple control markets. Weights are optimized so the synthetic market tracks the treatment geo closely in the pre-period.

After treatment starts:

  • observed treatment performance is compared to the synthetic counterfactual
  • the gap is the estimated lift

Strengths​

  • Can create a very tight pre-period fit by combining several controls
  • Handles cases where no single control is a perfect match
  • Provides a counterfactual series for visualization

Safeguards​

  • Pre-period fit reliability check
  • Bootstrap resampling for confidence intervals
  • Plausibility guard on extreme relative lift values

Plain-language summary​

"If we blend the best control markets into one synthetic twin of our test market, how much did the real market outperform that twin after launch?"


3) BSTS (Bayesian Structural Time Series)​

How it works​

BSTS models the treatment market's time series using:

  • local trend,
  • weekly seasonality,
  • and control market signals.

It forecasts what the treatment geo would have looked like without the intervention, then measures the post-period gap.

Strengths​

  • Naturally handles trend and seasonal structure
  • Produces probabilistic uncertainty through simulation
  • Strong when pre-period patterns are smooth and seasonal

Safeguards​

  • Bootstrap-based confidence intervals
  • Pre-period fit metrics (correlation, MAE, RMSE)

Plain-language summary​

"Based on pre-campaign patterns and control signals, what would sales have been without the intervention — and how far off was reality?"


Why run all three?​

ReasonExplanation
RobustnessDifferent assumptions reduce single-model bias
Agreement checkIf all three point the same way, confidence is higher
Diagnostic signalStrong disagreement suggests weak controls or data issues
Default in AIGenie"geolift" maps to "all" — all three run automatically

How to read model results together​

  1. Check if methods agree on direction (positive vs negative lift)
  2. Compare magnitude — large gaps between methods warrant caution
  3. Read confidence intervals — wide bands mean high uncertainty
  4. Combine with quality status — significance alone is not enough

Agreement patterns​

PatternWhat it suggests
All three significant, same directionStrong signal
Two of three significantModerate signal — review the outlier
None significant, adequate powerLikely small or no effect
Methods disagree on signReview controls and data quality

Model selection (when not using default)​

You can run individual methods instead of all three:

Method keyWhen to use
ancovaStandard DiD-style analysis
synthetic_didWhen you want a synthetic counterfactual with visual trace
bstsWhen trend/seasonality structure is important
all / geoliftRecommended default — runs all three

Key outputs per model​

Each method returns:

OutputWhat it means
total_liftAbsolute incremental impact in outcome units
relative_liftProportional impact (0.08 = 8%)
confidence_intervalRange of plausible true effects
p_valueStatistical evidence against zero effect
mdeSmallest detectable effect at target power
model_fit_metricsPre-period fit quality (varies by method)

Synthetic DiD additionally provides a counterfactual time series for charting.


For the full pipeline sequence, see geolift-methodology. For interpreting final outputs, see geolift-results.