Misconceptions about incremental marketing and how it works are common. In this new instalment of the Myth Busting blog series, we will examine whether incremental marketing is only suitable for brands with big marketing budgets that advertise across multiple channels..
Every business, large or small, needs to understand how its marketing is performing, otherwise what’s the point in marketing at all. Yet many SMBs wrongly believe industry measurement solutions are closed off to them because they don’t have big enough marketing budgets. While in some cases this is true, it’s a myth that incrementality measurement is only relevant for advertisers spending millions of dollars across multiple advertising channels and mediums. Good news for SMEs out there struggling to connect the marketing dots!
The nature of incremental marketing and its ability to measure across an almost infinite number of variables and - in the case of INCRMNTAL’s platform - without the need for experiments, makes it the perfect solution for any brand serious about understanding the true value of their marketing. The key thing for marketers to remember is that it’s the amount of variables they have to measure against that’s important when it comes to incrementality. Not how much they’re spending.
So what exactly is incremental marketing measurement?
Essentially incrementality measurement is measuring the value of ALL marketing activities to understand exactly which tactics or variables are performing for your brand, and crucially, which are not. Unlike other attribution measurement ‘solutions’ that attribute sales, downloads or clicks to a single point on a customer’s path to purchase, incrementality uses causality to measure the impact a marketing action had over sales.
Say a brand launches a new campaign using various iterations of text, static and video creatives across desktop, mobile app, CTV, DOOH and billboards. Incrementality wouldn’t just be able to deduce which versions of the ad across which screens are delivering the most value for the brand, but also how much external factors contribute. For example, using incrementality, marketers can understand the significance of things like seasonality, holidays and external advertiser specific factors such as weather, stock market trends or promotions, to provide marketers with complete clarity over the performance of their advertising campaign based on any metrics they wish to evaluate. Marketers can therefore make educated decisions about where they need to boost or decrease marketing spend. As a result, we see many clients reduce their marketing budgets significantly as a result of incremental measurement, while retaining the same ROI.
What’s more, incremental measurement does not require any user-level identifiers, meaning it’s not just the most effective measurement solution on the market, but also the most privacy-safe.
How can SME marketers get the most out of incremental?
Sounds good right? But as with any measurement solution, brands need to have a clear idea of what they want to get out of incremental measurement. Specifically, they need to decide which KPIs they want to measure against i.e. website visits, downloads, sales or revenues. And most importantly, if they want to understand what is really driving consumers to complete given KPIs, it requires the occurrence of numerous events (conversions, revenues, activities) per day to build a solid prediction.
It goes without saying that bigger brands will have more daily ‘events’ but even smaller brands - providing they run omnichannel marketing campaigns - have enough going on to justify the need for incremental measurement. Again, it’s important to highlight that when it comes to incrementality measurement, it’s not about how much brands are spending, but how many variables they have to measure against.
Don’t take our word for it, see the brand results..
INCRMNTAL works with StarBerry Games, an award-winning mobile game studio based in Berlin. In line with the launch of its game Mayor Merge, StarBerry wanted to understand how attribution measurement compared to incremental measurement in highlighting the value of certain tactics. What it found was that by measuring the incremental impact it was able to understand the true value of all marketing activities, even across Android devices, where user level 3rd party data is available.
In contrast, attribution measurement often missed the actual incremental value generated by a successful campaign. In the example below, we see a campaign that received credit for only 300 conversions, while the actual incremental value of it was well over 6,000 conversions. Making a decision based on poor attribution data would have led to the wrong decision. By measuring VALUE rather than the match between a click and an install, StarBerry was able to make the right marketing decisions to ensure the best ROI for its game.
Holy Water, a Ukrainian algorithmic content publisher that’s created a platform for writers to share their interactive stories and books with millions of users, was struggling to rely on attribution measurement since the launch of Apple’s App Tracking Transparency (ATT). The client had increased spend to almost 20K, yet wasn’t seeing any incremental lift in the KPIs they were tracking, despite their attribution tool reporting an additional 5,597 installs.
Thanks to INCRMNTAL however, Holy Water was able to analyse how each marketing decision such as budget, bid changes, and launching campaigns performed. Our machine learning (ML) features helped validate these decisions and understand their impact on revenue. As a result, the company was able to quickly reverse any decisions that negatively impacted their marketing traffic. Furthermore, the ability to understand how media channels affect each other meant Holy Water was able to reduce its cannibalisation rate by 20%, determine the true ROI for each channel, and make more informed decisions when analysing each channel individually.
If you want to unlock the full value of your marketing budget then contact INCRMNTAL today.