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)
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.