Incrementality
Incrementality is a scientific measurement approach that determines the true incremental value generated by a marketing activity by comparing outcomes against a statistically valid control group. Unlike basic attribution models, incrementality testing uses randomized controlled trials and sophisticated causal inference techniques to identify what would have happened without the marketing intervention, enabling marketers to understand the real marginal impact of their spending and optimize toward truly incremental growth.
Definition
Incrementality is a scientific measurement approach that determines the true incremental value generated by a marketing activity by comparing outcomes against a statistically valid control group. Unlike basic attribution models, incrementality testing uses randomized controlled trials and sophisticated causal inference techniques to identify what would have happened without the marketing intervention, enabling marketers to understand the real marginal impact of their spending and optimize toward truly incremental growth.
Examples
Measuring incremental revenue from a campaign by comparing exposed vs unexposed audiences
Testing true incremental impact of retargeting by withholding ads from a control group
Calculating incremental ROAS by comparing conversion rates between test and control
Determining incremental brand lift through randomized holdout experiments
Best Practices
- ✓Use proper randomization for test and control group selection
- ✓Ensure sufficient sample sizes for statistical significance
- ✓Control for external factors and seasonality
- ✓Test across different audience segments and channels
- ✓Document all test parameters and conditions
Supplemental Resources
- 📚[Data]
- 📚[Data]
