Over a hundred years ago, John Wanamaker famously said, “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” In past, this quote struck fear in the hearts of marketers but in the digital age, it’s not. Marketers can easily identify their users, analyze their behavior, personalize ads, etc. In other words, advertisers now know better than ever who are seeing their ads.
But the crucial question here is how can marketers know for sure if they’re successfully allocating ad spend to people who will be influenced by ads? The answer lies in incrementality. Simply, incrementality is calculated as the difference in revenue between two groups: those assigned to a treatment group (who see ads) and those in a holdout group (who do not see ads). Incrementality helps marketers serve ads to users more likely to be influenced by those ads (those who have “high incremental lift”) and dedicates less or no ad spend to users with a strong likelihood of purchasing regardless of seeing an ad (those who have “low incremental lift”).
It’s just a start. Download the full guide now and learn how incrementality is measured and why it’s essential for increasing revenue. Investigate also how status quo measurement solutions like “multi-touch attribution” are misleading and why legacy retargeting providers do not want you measuring incrementality.
An Example of How to Measure the Incrementality Using Two Kinds of Shoppers
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