Why are incrementality tests important?

Incrementality tests are important for many reasons:

• Measuring Causation: Incrementality tests measure the true impact or causation that your advertising has on sales. This is needed because the most common measurement for digital marketing, attribution, doesn't measure causation, only correlation. Attribution is susceptible to over crediting lower funnel channels that drive a high number of clicks. This can cause marketers to shift budget away from channels that are creating demand to less effective channels, hurting the overall return on ad spend (ROAS) for the business.

  
  

• Measuring Non-Click Impact: Incrementality tests do not rely on user-level data, making it a great solution for channels where user-level data is unavailable or incomplete. Incrementality tests can be run to measure any channel where an exposed and control group can be created.

  
  

• Optimizing Resource Allocation: By understanding the incremental impact of their channels marketers are able to better optimize their budget allocation to get a higher return on investment. However, optimizing based off incrementality tests alone is not straightforward, as they do have limitations. To solve this, we have created Incrementality-adjusted Attribution, a measurement methodology that combines incrementality testing with data-driven attribution to give marketers the most accurate cross-channel incrementality based measurement in real-time.