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How to Calculate Incremental Sales Driven by Media Tactic

How Do You Calculate Incremental Sales Driven by a Media Tactic?

  • FAQ
  • Incrementality
  • How Do You Calculate Incremental Sales Driven by a Media Tactic?
1 minute read

The impact of a marketing tactic (eg: Facebook Prospecting, Retargeting, Catalog for Housefile, Direct Mail, National TV) is typically measured in terms of incremental sales driven by that tactic. Incremental sales driven by a media tactic is calculated using advanced marketing measurement techniques. There are 3 major types of advanced marketing measurement techniques.

  • Design of Experiments (DoE)
  • Marketing Mix Modeling (MMM)
  • Multi-Touch Attribution (MTA)

 

Incremental sales driven by a media tactic are calculated using advanced marketing measurement techniques like experimentation, MMM or MTA.

Once incremental sales is calculated for a tactic using one of the above techniques, the ROI for that tactic is calculated using the following formula.