Analytics & Data

Holdout Testing

A testing method where a control group is deliberately excluded from a campaign to measure its true incremental impact.

Why It Matters

Holdout tests provide the cleanest measure of whether a campaign is actually driving results or just taking credit for organic behavior.

How It Works

You randomly assign a percentage of your target audience (typically 10-20%) to a holdout group that will not see the campaign. After the test runs, you compare conversion rates between the exposed group and the holdout to calculate incremental lift.

Real-World Example

A holdout test on a retargeting campaign reveals that 70% of attributed conversions would have happened without the ads, prompting a budget reallocation.

Common Mistakes

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Making the holdout group too small for statistical significance

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Contaminating the holdout by running overlapping campaigns

Holdout Testing FAQs

What percentage should the holdout group be?

Typically 10-20% of the audience — large enough for statistical significance but small enough to minimize lost revenue during the test.

How long should a holdout test run?

At least 2-4 weeks to account for natural conversion cycles and reach statistical significance.

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