An entry to which I have tried on many times, but each time I was effectively discouraged by the scant interest in the subject. However, I decided to take on the hottest trend in Western marketing, which in many countries has already lived to see a separate marketing field.

Here’s a concept that hasn’t yet taken over the industry scene, but will soon be talked about: incrementalism. I invite you to a comprehensive post in which I will try to bring some light to this intriguing phenomenon. Enjoy your reading!

Origin of the concept

According to the Cambridge Dictionary, the term incremental means:

pertaining to or denoting an increase or allowance, especially one of a series with a fixed scale. Otherwise: “incremental changes to the current system”.

In other words, it means the added value we get from additional activities. Sounds simple and complex at the same time, so let’s translate this definition into the world of marketing.

What is incremental marketing?

In the world of online advertising, incremental conversions are most often talked about in the context of mobile apps (see Adjust’s blog articles, Appsflyer). This refers to additional transactions that would not have taken place if the sources in question were not there. This makes a lot of sense when you think about the fact that mobile apps are definitely a separate entity from our website designed for computers and phones.

What are the assumptions of incremental marketing?

  • marketing budgets increase in proportion to the effects of individual channels
  • medium and short-term milestones are more important than the long-term strategy
  • ideal approach for companies that do not have the resources to invest in several channels simultaneously
  • fits in with the premise of A/B testing and campaign profitability experiments

How to evaluate the incrementality of marketing campaigns?

Paid media marketing

For all kinds of paid ads (Facebook Ads, Google Ads, Linkedin, Twitter, Pinterest, TikTok etc) this is by far the easiest. Generally simplified – evaluate whether a channel is delivering conversions that wouldn’t have happened were it not for the source. This means absolutely abandoning all kinds of campaigns on our brand name or duplicate spending on the same audience in different channels.

When evaluating the incrementality of these channels, it is best to look into the Assisted Conversions tab in Google Analytics. Then it’s worth looking specifically at the path that occurs most often and assessing what total revenue it provides us. This is not ideal, but for smaller and medium-sized brands it will work quite well. About more complicated methods of mathematical calculation of incrementality, I will definitely write more.

Branding and PR marketing

This is where the stairs begin, because it is, however, one of the most difficult areas to measure in terms of incrementality. Why? It’s hard to estimate the incrementality of a TV campaign, a radio ad or a YouTube video, and it’s almost impossible to estimate how many additional transactions such branding activities deliver. The latter statement did not appear here by accident – branding is mainly about fostering brand awareness, but for the purposes of this article, let’s focus on the incremental face of this field.

So how do you measure the success of incremental deals delivered from branding and PR activities? First – keep an eye on the number of users and new users in Google Analytics. Link the timing of the launch of such a campaign and the results so far. Second – where possible, use a form of marking with a unique code (a landing page dedicated to the action, a special discount on new products). Then repeat the action with the Supported Conversions tab in Google Analytics.

Want to learn more about incremental marketing?

If the above post has piqued your interest, let me reassure you that this is just the beginning. I’m digging deeper into the topic and as it develops, I will meticulously publish more articles on the subject.

Summary

Incrementality is definitely a trend worth watching, especially in difficult marketing times when we watch every penny spent several times. It allows you to manage your budget wisely and at the same time scale revenues and conversions in a sustainable way. It is a highly fluid topic, hence there is no single established model for measuring incremental conversions.

I’d be delighted if you share this post on Linkedin or your other favorite social media. Be sure to let me know about it and leave a comment below this post if you have any questions. Look forward to reading it soon!

Read more in the sources:

https://www.investopedia.com/terms/i/incremental-marketing.asp

https://www.thinkwithgoogle.com/marketing-strategies/data-and-measurement/marketing-incrementality/

https://medium.com/@davidraphael_88276/why-you-should-optimize-toward-incremental-conversions-on-facebook-340be83b47b5