ChatGPT said:
Great one — ATE and lift are closely related but not identical. Let’s pin down the difference.
🔹 Average Treatment Effect (ATE)
- Definition: The causal effect of treatment vs. control, expressed as a difference in outcomes.
ATE=Yˉ1 −Yˉ0
- Units: Same as the outcome (e.g. percentage points if outcome is conversion rate).
- Example:
- Treatment conversion = 15%
- Control conversion = 10%
- ATE = 0.15 – 0.10 = 0.05 → 5 percentage points.
🔹 Lift (Relative Lift)
- Definition: The relative increase in the outcome due to treatment, compared to control.
Lift=(Y0 - Y1) / Yˉ0
- Units: Percentage (relative to baseline).
- Example:
- Treatment conversion = 15%
- Control conversion = 10%
- Lift = (0.15 – 0.10) / 0.10 = 0.05 / 0.10 = 0.50 → 50% lift.
🔹 Key Difference
- ATE → absolute difference (how many points higher).
- Lift → relative difference (how much bigger relative to control).
✅ Interview one-liner:
“ATE is the absolute causal effect — the difference in outcomes between treatment and control. Lift is the relative effect — how much bigger the treatment outcome is compared to control, often expressed as a percentage.”
Would you like me to also map this to incrementality language (how marketers often call ATE = incremental conversions, and lift = % incremental gain) so you can sound aligned with Haus’s framing?