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Tag : attribution

Incrementality ROI

Overstock.com: ‘If Advertising ROI Is Not Incremental, It’s Just a Number’

The acronym ROI (return on investment) gets tossed around a lot in advertising, but many ecommerce brands are still mistaking causation for correlation when it comes to ROI. Related post: Marketers Are Sacrificing Billions in Revenue by Not Optimizing for Incrementality They often measure returns by looking at how many consumers viewed or clicked on their ads and how much money came back via purchases, regardless of how many sales would have occurred without the advertising in the first place. […]

Incrementality retargeting

Calculating Incrementality: Bucking the Status Quo

When it comes to retargeting, most agencies and third-party providers have rigged the system in their own favor by claiming credit for revenue that would’ve come through organically. Behind the scenes, they’re engaging in “status quo retargeting.” This approach targets shoppers with high organic purchase rates and low incremental lift who are already planning on buying regardless of seeing an ad. The result? Third-party providers’ self-reported performance looks strong because they’re measured based on last-click attribution. But you, the advertiser, […]

Start measuring incrementality

Incrementality: 5 Steps to Get Started [Infographic]

How much revenue does your brand generate when it spends money on advertising compared to when it doesn’t? This is a critical question for any brand, and the answer lies in incrementality. In short, incrementality is calculated as the difference in revenue between two groups: those assigned to a treatment group (who see ads) and those in a holdout group (who do not see ads). This difference reveals the additional revenue generated directly by advertising. Related post: Grow Revenue Profitably […]

Retailers ignoring incrementality

U.S. Retailers Are Leaving $5B on the Table [Infographic]

Yes, you read that right: five BILLION. By ignoring incrementality, U.S. ecommerce advertisers are sacrificing revenue and profit from their digital advertising in a big way. Related post: Retargeting Done Wrong: Marketers Sacrifice Revenue with Flawed Approach The infographic below tells the story of how online retailers can measure their advertising more effectively and grow revenue by optimizing their advertising for incrementality. How much growth, you ask? About a 200% increase over and above existing revenue. This story starts with […]

Grow Revenue Profitably with Incrementality [Ebook]

How can ecommerce marketers know for sure if they’re successfully allocating ad spend to people who will be influenced by ads? The answer lies in incrementality. Incrementality is calculated as the difference in revenue between a treatment group (who see ads) and a holdout group (who do not see ads). This method of using RCTs (randomized control trials) allows advertisers to measure the additional revenue generated by advertising that otherwise would not have existed without the ad spend. The main […]