Incrementality

Incrementality measurement is the rise in a desired outcome or action attributed to...

Incrementality measurement is the rise in a desired outcome or action attributed to specific marketing activity – be that paid media, ads or launched campaigns. It’s especially useful for ‘difficult’ to measure mediums in terms of ROI, such as social media or TV.

Why would I need this?

Incrementality testing or measurement is particularly important as omnichannel marketing becomes more common, to identify wastage and help answer direct questions such as which marketing formats or channels are directly impacting ROI, what might happen if you shift your strategy to use different channels or whether your investments are complimenting each other – or cannibalising each other.

How does it work?

The main ways to measure incrementality are through testing and experimenting. Testing will typically involve splitting audiences into test and control groups – where the difference in the required outcome or action will demonstrate the impact of your marketing activity. This can be a simple two-way split, or broken down by multiple variables or segments.

Ideally, the outcome you’d select for measuring with testing is a direct business outcome – e.g. ROI or ROAS – or cost measurement, such as cost per action or acquisition. If this isn’t possible, try to identify a strong indicator, and set a KPI goal against it. 

You’ll also need to ensure statistically significant results, so work with data teams to determine an ideal split between testing groups (don’t just default to 50/50) to get that significance, while also reaching a meaningful portion of your target audience.

Real world examples

The rise of Retail Media in the performance marketing playbook

How to measure incremental ROI


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