Method

How we calculate.

This page is here so you can check our figures without asking us for anything. Every parameter below comes straight from the calculation engine: change it there and this table changes with it.

The audience is split into a test group and a control group. We treat conversions as counts. The logarithm of the ratio between the two groups has approximately a variance inversely proportional to the number of conversions, the number of weeks, and the product of the holdout share with its complement.

From that follows the number of measurement weeks you need to separate a given effect from chance. And in reverse, which is often more useful: for a given number of weeks it gives you the smallest effect you can still demonstrate.

We do not calculate with pure Poisson noise. Real weekly figures swing more than that, driven by season, promotions, stock and competitive pressure. So we multiply the variance by a factor that depends on your business model: the further the conversion sits from media exposure, the higher that factor.

On top of the measurement weeks comes a maturation period. With a long sales cycle, todayu2019s conversions belong to media from months ago, and that lag has to fit inside the window.

The formulas

The number of measurement weeks

Var(ln(1 + delta)) = phi / (C · W · h · (1 - h))
W = phi · (z_alpha + z_beta)² / (C · h · (1 - h) · ln(1 + delta)²)

W is the number of weeks you need to measure before a relative lift delta can be told apart from chance. C is conversions per week across your whole population, h the share you hold back, phi the variance factor of your business model, and z_alpha and z_beta follow from your confidence level and your power.

The inversion: the smallest detectable lift

delta_min = exp( √( phi · (z_alpha + z_beta)² / (C · h · (1 - h) · W) ) ) - 1

This is the form that changes the conversation with finance. Not "how long does it take to demonstrate five per cent", but "what can I see at all within my own decision rhythm".

The measurement window, and when there is none

Within a decision cadence, measurement room is what remains once maturation is taken off. If maturation runs longer than the cadence, there is no window inside a cycle and we calculate across a full year. That is the sharpest finding this tool produces: anyone judged on a period shorter than their own sales cycle systematically measures the effects of a period they can no longer steer.

The parameter tables

They appear below exactly as they sit in the calculation engine, not transcribed. Anyone who wants to dispute a value knows precisely which one.

Variance factor by business model

ChoiceValue
Webshop or DTC1,6
Subscription or SaaS1,8
Lead generation B2C2,0
Non-profit or public sector2,2
Lead generation B2B2,6
Retail with stores2,8

The further the conversion sits from media exposure, the more your weekly figures swing for reasons that have nothing to do with media. This is an estimated parameter, not a measured value; it is the first number we will calibrate once enough calculations have come in.

Maturation weeks by sales cycle

ChoiceValue
Less than a week1
1 to 4 weeks2
1 to 3 months6
More than 3 months13

Midpoint of the budget band, in euros per year

ChoiceValue
Under 250k€ 150.000
250k to 750k€ 500.000
750k to 2M€ 1.350.000
2M to 5M€ 3.500.000
Above 5M€ 7.000.000

Usable weekly observations by history band

ChoiceValue
Less than 6 months20
6 to 12 months40
1 to 2 years78
More than 2 years130

Representative number of channels per band

ChoiceValue
1 to 32
4 to 65
7 to 108
More than 1013

Measurement weeks available within a decision cadence

ChoiceValue
Weekly4
Monthly8
Quarterly13
Annually39

The test for marketing mix modelling

A model with k channels needs roughly 3k + 8 parameters: adstock, saturation and a coefficient per channel, plus a baseline. We test the number of weekly observations per parameter. Below three the model is not identifiable, between three and five it only works Bayesian with strong priors from experiments, and from five it is defensible. The binding condition is not budget but history.

The Belgian geo rules

Two answers always come back as not achievable, whatever the volume. Fully national buying, because then no control area exists: that is a buying problem, not a statistical one. And the language border, because Flanders and Wallonia differ structurally in media consumption, competitive pressure and purchasing power, so the gap you measure is not your campaign. This is deliberately hard, and it is where this tool differs from an international calculator.

What this instrument does not do

No score

A mark out of a hundred would suggest measurability is a report card. It is a choice with a price.

No rates

We express agency effort in PAR, not in euros per day. That is a deliberate limitation.

No model of your channels

We say what is achievable, not what works. The second one needs your data.

Frequently asked questions

Why does marketing mix modelling not work on a 500,000 euro budget?

The budget is not the problem, the number of observations is. Weekly data over two years gives you about a hundred data points. With eight channels plus adstock, saturation and coefficient parameters per channel you are already past thirty parameters. Below five observations per parameter the model is not identifiable and produces estimates driven entirely by the priors.

Why is the language border not a valid test split in Belgium?

Flanders and Wallonia differ structurally in media consumption, competitive pressure, purchasing power distribution and seasonality. The gap you measure between them is therefore not attributable to your campaign. A valid geo experiment works with matched regions inside a single language region.

How long does a holdout test need to run?

The number of measurement weeks follows from W = phi times the square of the sum of z-alpha and z-beta, divided by the product of weekly conversions, the holdout share times its complement, and the square of the natural logarithm of one plus the lift. At a thousand conversions per week, a ten percent holdout and a five percent lift to detect, the best case is thirty-seven weeks.

What is a proof agreement?

One page that marketing and finance sign together before the budget year starts. It fixes what gets measured, at what confidence, what explicitly does not get measured, which decision rests on which level of evidence, and how often it is reviewed. It moves the burden of proof discussion forward, to the point where it can still be negotiated.

Back to PROOF