February 23, 2024

How to Determine If an Ad Drives Incremental Results

If you want to determine whether an ad drove incremental results — for example, if your holiday campaign helped generate sales that wouldn’t have otherwise occurred — you need incrementality testing. Unlike last-click attribution, which is a flawed model that fails to account for multiple touchpoints in the customer journey, incrementality tests provide robust, proven estimates of how much your advertising campaigns are driving above and beyond what would have happened without it.

To run a test, you’ll need two groups of users: group A (the treatment) and group B (the control). Group A receives the marketing campaign you’re evaluating while group B doesn’t. You then compare the total number of conversions that occur in each group over a specified time period to identify which marketing tactic is driving more conversions and at what cost.

Then you can apply your insights to make better-informed decisions about how to allocate budget and which ads to invest in for optimal performance. For instance, if you discover that one of your marketing tactics is not as effective as previously thought, it may be time to scale back the spend and reallocate elsewhere.

Additionally, if you’re using your incrementality results to calibrate or discredit a platform’s attribution reporting, it’s important that your experiment design is accurate and uses methodologies like propensity score matching or randomized controlled trials to minimize bias. This will allow you to get reliable, predictive results and determine if an algorithm is overstating its contribution to your overall marketing success.

This is Charm SEO

At Charm SEO, we empower businesses to reach their full online potential. Our team of experts specializes in creating tailored digital marketing strategies that drive traffic, enhance brand visibility, and boost conversions. Let us help you navigate the digital landscape with our innovative and results-driven solutions.