How To Leverage Incrementality To Establish a Profitable Media Mix

How to Leverage Incrementality to Establish a Profitable Media Mix

Sofia Maravich, Head of Customer Success Operations

Published 05/30/2023

As any marketer knows, today’s vibrant, ever-shifting digital landscape offers numerous opportunities to connect with your audience. With these opportunities comes the challenge of making the right choices and measuring success; how can you meet your end-user in the right place, at the right time, and with the right message that results in action? To help answer these questions and navigate the measurement challenges in today’s landscape, marketers need to start relying on new methods. Here is how you can best leverage incrementality.

1. Define a Clear Goal

The first step is defining a clear and measurable goal, tied to a business outcome. Establishing a well-defined goal allows you to measure campaign performance and define success.

When setting your goal, it is important to consider the following aspects:

  • Choose relevant key performance indicators (Cost Per Order or Return on Ad Spend)
  • Make it specific (Increase ROAS from $2.00 to $2.50 vs. increase ROAS)
  • Establish a baseline with current or historical data

For example, the Marketing Manager of an e-commerce shoe store (generating roughly $65M in annual revenue) might set a goal to increase her ROAS from $5.25 to $5.50 within the next quarter.

2. Embrace a Testing Mindset

Adopting a testing mindset is essential for consistently refining and improving the performance of your campaigns. By continually testing changes, you can ensure the effectiveness of your campaigns and capitalize on opportunities for growth.

This approach involves analyzing audience targeting, ad creatives, and bidding strategies. By quickly identifying false results or underperforming tactics, you can shift budgets, adjust your strategy, prevent wasted ad spend, and avoid costly mistakes.

Embrace an iterative approach to your campaigns, making data-driven decisions based on the results of your tests.

3. Integrate Incrementality Testing Into Your Measurement Practice

Incrementality represents the causal impact of a Media Tactic, discounting Conversions that would have happened regardless. Keep in mind when you talk about incrementality, it should be synonymous with testing. Going back to the Marketing Manager who wants to increase her ROAS from $5.25 to $5.50, here’s how she could run an incremental test:

  • She is running a national campaign targeted to prospects on Facebook.
  • She splits her target audience into two groups - a test and control.
  • She gives the test group a radically different treatment, withholding media for a period of time.
  • The number of users who still convert in the markets where media was dark, determines her incrementality for this tactic.

4. Tie Incrementality to Profitability

While incrementality helps you make better decisions and optimize your media mix, it's essential when considering the impact on profitability. Understanding the real effect of your advertising decisions on not just revenue, but also on profit, taking into account product costs, margins, and other fees. In doing this, you know exactly how much impact to the bottom line each dollar of media drives and you can make a strategic decision about what level of performance you need to see.

5. Always Be Evolving

It's crucial to continually evolve and adapt your media mix to meet your goals and captivate your target audience. While data-driven decision-making is crucial, always keep a pulse on creativity or the exploration of new ideas. Real growth comes from striking a balance between optimizing your media mix, embracing incrementality, and being open to fresh strategies or tactics that set your brand apart.

If you're looking to take your media mix to the next level and create a truly profitable marketing strategy, don't hesitate to learn more about Measured. Discover how you can transform your advertising approach and unlock your brand's full potential by visiting today. Together, let's create a powerful media mix that drives growth and success for your business.

Looking to establish a profitable media mix and maximize your marketing efforts? Discover how Measured can help you leverage incrementality for success. Visit to see our solution in action and unlock your brand's full potential. Take the first step towards a powerful media mix that drives growth and profitability.

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