Incrementality And What It Means For Your Ads

Knowing where your sales come from is critical. Even more valuable is knowing how much you should be spending on your ads.

Differentiating between organic and paid media isn’t cut and dry. Not having clear information regarding your efforts can lead you to overspend on ads that aren’t performing, users who would have converted already, or missing target demos and customers altogether due to relying solely on organic traffic. 

Cannibalization is a significant fear for marketers, and it’s not unwarranted; cannibalization occurs when marketers spend money acquiring traffic/customers they would have already gotten, either through organic or other paid efforts – i.e., customers who would have converted with or without the ad. Money should be spent on finding and acquiring new customers that need a little extra push, not wasted on users who already know and love your product. 

This is when knowing exactly where your marketing efforts are going comes into play. The best way to analyze your budgets and make sure you’re spending your money effectively is through incrementality. 

Evocalize defines incrementality as:

“The incremental benefit generated per unit of action taken. Incrementality is the lift in desired outcome (web visits, conversion, revenue, etc.) provided by marketing activity (ads run, campaigns launched, etc.). Incrementality isn’t solely about assigning credit or value to a conversion (that’s attribution), it’s about identifying the specific interaction that moves a user from passive to active and as such drives real business results.”

via Evocalize

To determine incrementality, marketers need to look deep into their last-touch conversions and run A/B tests to find where their money is being spent the most effectively. 

This is where GeistM can help.

To help a client determine where best to allocate spend, Geist ran incrementality tests to find which users were converting organically versus converting after interacting with Geist content. 

Using the third-party analytics platform, Measured, Geist tested the content funnel across different Facebook placements for three months and discovered Geist’s efforts alone drove an average of 93.6% incrementality rate. 

Month 1 shows Geist efforts reaching 91% incrementality, Month 2, 94% incrementality, and Month 3, 98%. This shows that on average of the three months, 93% of all last-touch conversions were driven by Geist’s efforts. Fiscally, of the $347,471 budget in Month 3, $340,521 was used to acquire new customers. 

Acquiring customers profitably is what GeistM does best. Running incrementality tests and digging deep into budget allocation paired with proprietary technology is what keeps Geist on the cutting edge of marketing and helps brands use their budgets in the most effective, cost-efficient way. 

Learn how Geist can help you boost incrementality and reach customers like never before!