Incrementality: The most important thing for marketers to track

Описание: Incrementality is really the only thing marketers should care about.

You should be able to answer this: “if we put X amount of dollars into some marketing channel, how much additional revenue is that going to derive?”

Or, “if we pull back on budget, how much will that change our overall business?”

I remember when eBay did this experiment a few years back, they turned off their branded search. They realized that when people were looking up “socks ebay” they intended to go to their site and didn’t need to pay the extra google tax for that.

They knew that, even though last touch attribution was telling them branded search, it had been the other channels that had made them aware of their brand, and it wasn’t genuinely incremental – that saved them a lot of money.

Another similar question: how incremental is spending on Facebook?

Are they generating new customers for you, or are they so good at knowing when people are likely to purchase within a certain category that they are just showing ads to people who were already very likely to purchase anyway?

It’s critically important that every CMO look at their measurement methods and audit if they’re actually accounting for incrementality or falling short.

Knowing the incrementality for every dollar of each channel is the only way to optimize your marketing budget, reduce waste, and drive additional revenue from those working well for your brand.

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