Difference in Difference FAQ

Glossary
Term Definition
Campaign Period Sales Total dollar sales of campaign weeks
Dollars per store per week Average dollar sales by week divided by number of stores
Forecasted In Campaign Dollar Sales Test store average pre campaign dollar sales multiplied by control store coefficient factor*
*Control Store Coefficient Factor Average in campaign dollar sales divided by average pre campaign dollar sales
Campaign Lift % In campaign dollar sales minus forecasted in campaign dollar sales, divided by forecasted in campaign dollar sales
Incremental Dollar Sales Difference between test store dollars per store per week and forecasted in campaign dollar sales, multiplied by number of test stores, multiplied by number of weeks in campaign
iROAS Incremental dollar sales divided by media budget
ROAS Incremental dollar sales minus budget divided by media budget
Test Stores Stores where media is taking place, also called campaign stores or exposed stores
Hero Items Focus Items for the project





Difference in Difference Calculation Example
Dollars per store per week pre campaign Dollars per store per week in campaign Store Count
Control Stores $40 $60 800
Test Stores $100 $160 4,000

Term Calculations Results
Control Store Coefficient Factor $60 / $40 1.50
Forecasted in Campaign Dollar Sales $100 * 1.50 $150
In Campaign % Lift ($160 - $150) / $150 6.7%
Incremental Sales ($160 - $150) * 4,000 * 6 $240,000
iROAS $240,000 / $100,000 $2.40
ROAS $240,000 - $100,000 / $100,000 $1.40
Mobirise



If you have any further questions, please contact your Pathformance team member for assistance.