Incrementality Measurement Tools

Beyond Traditional Metrics: Why Marketers Need Incrementality Measurement

Traditional attribution models often give credit where it isn’t due, leading to suboptimal budget allocation. By focusing on the value of incremental lift rather than correlation, marketing teams can identify which tactics genuinely drive new business versus those that merely capture existing demand.

How Incrementality Measurement Works

Incrementality measurement compares performance between otherwise identical groups – one that sees your marketing and one that doesn’t. The difference shows precisely how much business your campaigns generated.

The process works by creating two identical audience segments: one exposed to a marketing effort (test group) and another not exposed (control group). By measuring the difference in marketing performance between these groups, marketers can quantify the incremental sales or conversions explicitly generated by that campaign.

Here’s what makes incrementality measurement distinct:

Test vs. Control Group Analysis

Creating statistically valid control groups verifies that when comparing results, you’re truly measuring the incremental impact of your marketing campaign. The control group represents what would have happened naturally without intervention, providing a baseline for comparison.

Causation Over Correlation

Unlike last-touch attribution or simplified models, incrementality measurement focuses on causation rather than correlation. Causation over correlation eliminates the “would have happened anyway” factor from your performance analysis.

Why Incrementality Works

Incrementality testing shows which marketing activities create new business. Testing for incrementality changes how teams spend their budgets and which channels they prioritize:

Accurate Marketing Performance Measurement

An incrementality tool helps marketers move beyond vanity metrics to understand the actual influence of their campaigns on business outcomes. Rather than tracking clicks or impressions, marketing performance measurement tools show how marketing efforts directly contribute to sales impact and revenue growth.

Optimized Marketing Budget

Budget decisions require evidence of channel impact beyond basic attribution models. Performance teams can identify and shift investments toward genuinely effective touchpoints:

• Spend Reallocation: Marketers redistribute resources to channels demonstrating true incremental business impact.
• Hidden Value Discovery: Analysis often surfaces undervalued channels delivering higher incremental return than previously recognized.
• Confidence in Decisions: Budget adjustments backed by scientific measurement provide greater certainty when defending investment choices.

Privacy-First Approach

Incrementality measurement works with aggregate data, making it inherently privacy-compliant. This future-proofs your measurement strategy against increasing regulation and browser restrictions.

Types of Incrementality Tests

Marketing teams need different testing methods depending on what they’re trying to measure. Pick the best type for your specific questions:

Geo-Based Testing

Geo-based incrementality tests compare performance across different geographic regions, with some receiving campaign exposure while others serve as control groups. Geo-based testing works particularly well for measuring offline sales impact or when customer-level tracking isn’t available.

Audience Holdout Testing

Randomized testing creates scientific evidence of campaign effectiveness through direct comparison. Marketing teams can measure true performance by isolating exposed versus unexposed audience segments:

• Randomized Assignment: Users are systematically allocated to either receive or not receive specific marketing treatments.
• Individual-Level Measurement: Provides clean incrementality data at the user level rather than aggregated estimates.
• Digital Campaign Precision: Delivers valuable insights for digital campaigns with highly refined audience targeting capabilities.

Matched Market Testing

Testing pairs of similar cities based on past results and customer makeup. One city receives the campaign while its match doesn’t, showing how much business the marketing efforts created.

Selecting the Right Incrementality Tool

Look for these features when picking a unified measurement solution that works for your business:

Flexibility and Scope

Incrementality tools should accommodate different marketing strategies and measurement questions. Successful programs work across the entire customer journey:

• Multi-Channel Capability: Complete tools measure lift across both digital platforms and offline media without artificial boundaries.
• Diverse KPI Tracking: Comprehensive measurement extends beyond conversions to include brand metrics, engagement signals, and customer value.
• Test Methodology Variety: Strategic systems support multiple testing approaches including geographic splits, audience segments, and time-based experiments.

Integration Capabilities

Good incrementality tools connect directly to your current marketing systems without requiring complex machine learning workarounds. This means less time spent moving data between platforms and more time using the results to improve performance.

Expertise and Support

Incrementality measurement tools alone don’t guarantee useful incrementality insights. Having access to people who understand the statistics matters:

• Test Design Help: Partners should explain how to set up valid tests without requiring you to become a data scientist.
• Clear Explanations: Look for teams who translate complex results into simple business recommendations you can actually use.
• Practical Setup Support: Good vendors handle technical implementation details so your team doesn’t get bogged down in integration work.

Speed to Insights

Traditional testing methods took months to complete the full setup cycle, including running tests and analyzing. Current tools deliver results in weeks by processing data faster and continuously, so you can make campaign adjustments while they’re still running instead of waiting for post-campaign reports.

Why Attribution Is Failing

Cookie blocking and privacy changes have broken traditional attribution models. Instead of trying to fix a broken system, successful teams are switching to incrementality testing.

• Proof vs. Credit: Attribution divides credit for conversions that would happen anyway, while incrementality measures what your marketing caused.
• Privacy-Proof Method: Incrementality uses test and control groups rather than tracking individual users, which works even when cookies and identifiers disappear.
• Real Business Impact: Attribution shows which ads were last seen before conversion; incrementality shows which marketing drives business growth.

Avoiding Common Incrementality Pitfalls

While powerful, incrementality measurement delivers the most value when implemented with expert guidance. Without professional support, organizations often encounter preventable obstacles:

Test Design Complexity

Creating properly controlled experiments requires statistical expertise to produce valid results. Without specialists, companies frequently struggle with test duration calculations, sample size requirements, and interpreting significance thresholds.

Cross-Channel Measurement

Reviewing how channels interact to drive incremental impact presents industry-specific challenges that self-directed approaches typically miss. Organizations without specialized tools often make incomplete budget decisions based on siloed channel views.

Implementation Requirements

When attempted independently, some incrementality testing approaches create an unnecessary technical burden. Organizations benefit from solutions that minimize engineering resources while maintaining measurement accuracy.

Skai’s Impact Navigator

Impact Navigator measures the effectiveness of marketing tactics in the only place that matters: the real world. With this self-service solution, run tests in just a few clicks and uncover results in just a few weeks. Our software empowers you to design and monitor testing for any channel in your marketing mix to measure results and optimize ad spend. Impact Navigator surfaces intelligent insights in real time, so you can make data-driven decisions that boost productivity and drive brand growth.

Ready to leave guesses and hunches behind? Schedule a quick demo today to see how our incrementality measurement tools can serve as the foundation of your marketing measurement practice.

Frequently Asked Questions

How do you measure incrementality?

Incrementality is measured by comparing the performance of a test group exposed to specific marketing activities against a control group that is not exposed. This scientific approach allows marketers to isolate the true impact of their campaigns by revealing what would have happened without the intervention.

What is an example of an incrementality test?

An example of an incrementality test is a geo-matched market test, in which similar geographic regions are divided into test areas receiving the marketing activity and control areas that don’t. The test might run for 6-8 weeks with carefully matched regions based on historical performance, demographic similarities, and market conditions to confirm valid comparisons.

Does MMM measure incrementality?

Marketing Mix Modeling (MMM) does measure incrementality by analyzing the relationship between marketing investments and business outcomes while controlling for other variables. The statistical models isolate the incremental impact of marketing activities by accounting for baseline sales, seasonality, competitive actions, and other external factors that might influence results.