Determine marketing effectiveness by performing incremental lift tests
What is Incrementality?
With Incrementality, you can uncover the real value of your marketing efforts by measuring which conversions were made as a result of your marketing campaigns and which would have happened organically, without them.
By measuring Incrementality, you can effectively demonstrate the impact of a particular channel or campaign on business outcomes and optimize your budget allocation accordingly.
How does Incrementality work?
To determine the incremental lift of a specific marketing channel or campaign, an experiment is used in which the target audience is randomly split into test and control groups, ensuring a minimal bias between them.
The ‘test’ group, is exposed to the normal campaign and sees ads while the ‘control’ is excluded from the campaign.
This way, it is possible to quantify the incremental impact of the campaign and measure the sales that it generates (test group) vs the sales that occurred in the absence of this marketing investment (control group).
The main benefits of measuring Incrementality:
- Validation of marketing channel effectiveness
- Reduced guesswork in campaign optimization
- Optimization and better allocation of marketing budgets
- Validation of hypotheses derived from other measurement methodologies such as attribution
- Minimize the cannibalization of organic user engagement
Questions that Incrementality can help answer:
- What happens if I increase my budget for campaign X?
- What’s the incremental value of channel Y?
- How much of the revenue attributed to a campaign is due to advertising?
- Which network has the highest incremental value?
- Is my campaign cannibalizing my organic traffic?