In the ever-evolving landscape of digital marketing, understanding the true value of our marketing efforts is crucial. One of the most effective ways to gauge this is through the concept of incremental conversions. But what exactly does this term mean, and why is it important for marketers?

What Are Incremental Conversions?

Incremental conversions refer to the additional conversions generated as a direct result of a specific marketing activity or campaign, beyond what would have occurred without that activity. In simpler terms, it’s about understanding the extra value your marketing efforts bring to the table.

Key Points:

• Incrementality vs. Attribution: While traditional attribution measures how many conversions can be traced back to specific ads, incremental conversions focus on the actual lift in performance due to those ads.
• Importance of Measurement: Knowing your incremental conversions helps in making informed decisions about where to allocate marketing budgets effectively.

Why Measure Incremental Conversions?

Measuring incremental conversions allows marketers to:

• Identify True Value: Understand which campaigns are genuinely contributing to sales and which are merely taking credit for conversions that would have happened anyway.
• Optimize Budget Allocation: By identifying which channels deliver incremental value, marketers can allocate budgets more effectively, reducing waste and increasing ROI.
• Understand Cannibalization: Recognize when one marketing channel may be stealing conversions from another, ensuring that efforts are not counterproductive.

Example:

Imagine you run a campaign on social media. If you see an increase in conversions during the campaign period, you might think it was successful. However, without measuring incrementality, you might miss the fact that those conversions would have occurred anyway due to organic traffic or other channels. By measuring incremental conversions, you can pinpoint the actual impact of your social media efforts.

How to Measure Incremental Conversions

The traditional methods of measuring incrementality often involved running controlled experiments, which can be resource-intensive and may not always yield clear results. However, with advancements in technology, particularly through platforms like INCRMNTAL, measuring incremental conversions has become more straightforward and efficient.

Steps to Measure Incremental Conversions:

• Set Clear Objectives: Define what you want to measure (e.g., sales, app downloads).
• Utilize Causal Inference: Use platforms that apply causal inference to analyze the data and determine what conversions are truly incremental.
• Continuous Monitoring: Implement an always-on measurement strategy that allows for real-time insights into marketing performance without needing to pause campaigns.

Benefits of Using Advanced Measurement Platforms:

• No Need for Experiments: Unlike traditional methods that require stopping campaigns to measure impact, advanced platforms can assess performance without disruption.
• Holistic View: They provide insights across multiple channels, helping marketers understand the full picture of their marketing effectiveness.

Conclusion

Understanding and measuring incremental conversions is essential for any marketer looking to maximize their ROI and make data-driven decisions. By focusing on the true impact of marketing activities, we can refine our strategies, allocate budgets more effectively, and ultimately drive better results.

At INCRMNTAL, we provide a robust platform that allows marketers to measure the incrementality of their marketing efforts seamlessly. Our technology leverages causal inference to deliver actionable insights, enabling brands to unlock the full potential of their marketing spend. If you're interested in learning more about how we can help you measure incremental conversions effectively, feel free to reach out for a demo!