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Incrementality measurement helps marketers understand the effectiveness of paid campaigns by comparing differences in outcomes between an audience that saw the ad and a comparable audience that didn’t. This metric shows the real value driven by paid marketing, which ultimately helps the paid marketer decide on where to invest ad dollars — and justify a budget increase if they need more money to spend. The CEO of a company is naturally interested how much revenue the company produces in a given time. The CMO of a company should be equally interested in the following question: How much money did the company make thanks to paid marketing? You can answer this question with incrementality measurement.

  • LP

    Lukas Pfleger

    about 1 year ago #

    Interesting article, very good points. Evaluation of incremental revenue and incremental cost can help you decide whether you should launch a campaign in the first place. However, it makes even more sense to use these metrics for your ongoing marketing activities. Measuring incremental revenue in real time will help you prioritize between your marketing campaigns and channels. Controlled experiments provide an optimal framework for such measurement.

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