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

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

The impact of a marketing tactic (eg: Facebook prospecting, retargeting, catalog, direct mail, national TV) is typically measured in terms of incremental sales driven by that tactic. Incremental sales driven by a media tactic are calculated using advanced marketing measurement techniques. There are three major types of advanced marketing measurement techniques.

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

Incremental Sales Formula: incremental sales = f (media spend, raw sales, other parameters)

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

ROI Formula: ROI = incremental sales divided by media spend

 

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Madan Bharadwaj

Expert in advertising measurement, attribution and analytics

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