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Why Battle Over Advertising Attribution When Incrementalism Can Win the War?

January 19, 2018

If you advertise shoes on Facebook and 100 people buy them while the ad is running, is your advertising working?

 

The answer, of course, depends.

 

 

It depends on how much you spent on advertising versus the revenue generated from those purchases. It depends on factors like other ads on other channels, email marketing, or word of mouth that may have influenced shoppers’ decisions. And most importantly, it also depends on how many sales would have occurred if you didn’t advertise the shoes at all.

 

Marketers often overlook this “gold standard” metric of incrementality—the only way of measuring true net-new revenue generated from advertising.

 

Incrementality is so commonly ignored because it’s always been difficult to measure and optimize. The result? A mess of attribution models that try (but fail) to paint an accurate picture of how online advertising truly pays off.

 

What is incrementality?  Read more.

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