Yizhi Liu, Balaji Padmanabhan, Siva Viswanathan
Digital advertising increasingly relies on visual content, yet marketers lack rigorous methods for understanding how specific visual attributes causally affect consumer engagement. This paper addresses a fundamental methodological challenge: estimating causal effects when the treatment, such as a model's skin tone, is an attribute embedded within the image itself. Standard approaches like Double Machine Learning (DML) fail in this setting because vision encoders entangle treatment information with confounding variables, producing severely biased estimates. We develop DICE-DML (Deepfake-Informed Control Encoder for Double Machine Learning), a framework that leverages generative AI to disentangle treatment from confounders. The approach combines three mechanisms: (1) deepfake-generated image pairs that isolate treatment variation; (2) DICE-Diff adversarial learning on paired difference vectors, where background signals cancel to reveal pure treatment fingerprints; and (3) orthogonal projection that geometrically removes treatment-axis components. In simulations with known ground truth, DICE-DML reduces root mean squared error by 73-97% compared to standard DML, with the strongest improvement (97.5%) at the null effect point, demonstrating robust Type I error control. Applying DICE-DML to 232,089 Instagram influencer posts, we estimate the causal effect of skin tone on engagement. Standard DML produces diagnostically invalid results (negative outcome R^2), while DICE-DML achieves valid confounding control (R^2 = 0.63) and estimates a marginally significant negative effect of darker skin tone (-522 likes; p = 0.062), substantially smaller than the biased standard estimate. Our framework provides a principled approach for causal inference with visual data when treatments and confounders coexist within images.