Incrementality in Marketing: Measuring the True Impact of Campaigns

Incrementality

Incrementality testing is a proven method for determining the true impact of a marketing campaign. The process involves splitting the audience into two groups: the test group, which is exposed to the campaign, and the control group, which is not. By comparing the performance of both groups, marketers can isolate the results directly driven by the campaign.

Why Incrementality is Important:
Incrementality gives you insights that go beyond basic attribution. It helps marketers see which campaigns actually drive growth — not just take credit for it. Traditional attribution models often overestimate the impact of ads by counting conversions that might have happened anyway. In contrast, incrementality focuses on the true lift caused by your marketing. This makes it easier to spot what’s working, cut what’s not, and spend your budget more wisely.

1. Better Decision-Making
   Incrementality helps marketers make smarter choices by showing which campaigns or channels actually move the needle on key metrics like revenue, engagement, or customer retention.
2. Optimal Budget Allocation
   When you know which efforts generate real results, you can shift your budget toward the most effective channels. This means less waste and more return on every dollar spent.
3. Measurement of Campaign Effectiveness
   Incrementality testing gives you a clearer picture of what’s working. It separates conversions driven by your campaigns from those that would’ve happened anyway — helping you measure real effectiveness.

Incrementality Testing and Its Role in Marketing:
Incrementality testing is a proven method for determining the true impact of a marketing campaign. The process involves splitting the audience into two groups: the test group, which is exposed to the campaign, and the control group, which is not. By comparing the performance of both groups, marketers can isolate the results directly driven by the campaign.

For example, imagine the test group converts 10% more than the control group. That extra 10% is known as incremental lift. In simple terms, it’s the part of the result that comes directly from the campaign — not from other sources. This makes it easier to measure real performance.

Key Concepts in Incrementality:

• Cross-Stack Impact
  When you run campaigns across different platforms owned by the same company, it’s important to know which ones actually drive results. Cross-stack testing helps measure the added value from each platform separately. This way, you can avoid giving credit to the wrong channel.
  
• True Lift
  True lift shows how many conversions come only from your campaign. It removes results that would have happened anyway, even without any ads. As a result, you get a clear picture of your campaign’s real impact.

How to Calculate Incrementality:

1. Create Test and Control Groups
   Start by selecting two similar audience groups. Show your campaign only to the test group. The control group should not see any ads.
2. Track Conversions
   Next, monitor how many people in each group complete the desired action — such as making a purchase, signing up, or downloading an app.
3. Find the Lift
   Finally, compare the conversion rates. Subtract the control group’s rate from the test group’s rate to find the added impact of the campaign.

Incremental Lift (%)=(Test Conversion Rate−Control Conversion Rate)×100

This formula shows how much of your result is driven directly by the campaign and nothing else.

Popular Tools for Incrementality Testing:

1. Google Ads Incrementality Testing
   Google Ads offers incrementality testing tools that enable advertisers to measure the additional impact of their campaigns on conversions, helping brands determine ROI with confidence.
2. Facebook Lift
   Facebook Lift studies provide insights into campaign incrementality by comparing exposed and unexposed audiences, allowing brands to see the true impact of ads.
3. AppsFlyer Incrementality
   AppsFlyer offers incrementality testing and measurement tools for mobile campaigns, allowing app marketers to understand the incremental impact of their advertising on installs, engagement, and revenue.

For a beginner’s guide to incrementality testing, WordStream’s guide provides a comprehensive overview.

Frequently Asked Questions:

• What does incrementality mean?
  Incrementality refers to the additional impact generated by a marketing campaign or channel. It’s measured by comparing results from a group exposed to the campaign against a baseline or control group that wasn’t.
• What is incrementality in Google Ads?
  In Google Ads, incrementality measures the extra conversions or sales that can be directly attributed to your paid campaigns — separating them from results that would have happened organically.
• What is the incrementality of a marketing channel?
  This reflects how much a specific channel contributes to key metrics like revenue or engagement above and beyond what would occur without it. It helps marketers understand the true value of each channel in the mix.
• What is true incrementality?
• True incrementality refers to the exact, measurable lift a campaign produces — excluding conversions that would have happened anyway. It isolates real performance from background noise.

Are you curious about the true impact of your marketing campaigns? Anderson Collaborative can help you measure incrementality to make data-driven decisions, optimize budgets, and maximize ROI. Contact us to discover the incremental lift your campaigns can deliver.