Incrementality is the only important marketing metric

Incrementality is the only metric that matters — or at least, that was our hypothesis going into episode two of our video series, The Hypothesis. In this episode, we delve into the challenges and considerations of using incrementality as your primary method of understanding marketing effectiveness. Our chat includes seasonality, how long these tests take, and the level of sophistication required for different advertising programs. Learn about the importance of regular testing, questioning assumptions in marketing measurement, and how to start your own incrementality tests. Watch the full video below or listen to the episode here to get this conversation in its entirety. More of a skimmer? Keep reading for our top takeaways.

Top takeaways from this episode 

What is incrementality and how do we measure it?

• Incrementality is the value driven from your advertising program as a direct result of the advertising and would not have been generated otherwise. It’s a marketing metric that measures the direct impact of marketing activities on business outcomes.
• There are two common ways to measure the incremental impact of your advertising:
  • Experiments and testing
  • Media mix modeling (or MMM as you often see it referred to)
• We wrote a whole blog on incrementality and how to measure it here if you want a deep dive on the topic. 

What are marketers measuring now?

• Currently, marketers are relying heavily on in-platform metrics or smaller, more campaign specific tests.
• Because of this, a lot of teams are missing out on understanding the impact their efforts are having on business results. Thus, not understanding the incremental impact of their efforts. 
• Check out episode 2 of The Hypothesis to learn all about in-platform analytics and reporting.

What should we be doing instead?

• We need to remember that measuring incrementality requires a sufficient amount of time to get proper results. It shouldn’t be rushed. 
• Consider seasonality and noise in the retail season when planning to measure incrementality.
• Any brand, regardless of size, can incorporate incrementality testing, but the level of sophistication required depends on the significance of the marketing program relative to the overall business.
• Regular testing and questioning assumptions are crucial in marketing measurement, and in-platform measurement may not provide a direct link to business outcomes.
• Mapping out assumptions is crucial for understanding the impact of marketing programs.
• A clear roadmap for testing and experimentation is essential for long-term success.
• Internal education on testing roadmaps is important for stakeholders to understand the dynamic nature of marketing metrics.