In a time of economic uncertainty, advertisers are favoring channels that promise to deliver the best results. However, without the right measurement tools, performance metrics can be inaccurate, leading to a risk of misallocating ad spend and jeopardizing long-term success.
Incrementality is a crucial concept to understand, though it doesn’t have a universal definition. True incrementality is defined by a brand’s key performance indicators (KPIs) and the metrics that help them achieve their goals.
For your brand, incrementality measurement may evaluate:
- Whether a channel is driving more traffic than it would otherwise receive.
- If a publisher partner’s touchpoint increases a consumer’s propensity to convert.
- Whether the speed to conversion is shorter in the partner channel compared to other digital channels.
- The total basket size driven by publisher partners or the number of incremental dollars per order.
- The extent to which partnerships drive higher customer lifetime value, brand loyalty, and repeat purchases.
- If the channel is driving a stronger earned media value (EMV) than traditional channels.
Focusing on incrementality is vital because it allows you to quantify your contributions, ensure your investments are driving demand, and determine where to invest marketing dollars.
Traditional measurement models, which often rely exclusively on last-click attribution and have limited impression tracking, fail to capture the full impact of partnerships. To overcome these challenges, advertisers must use solutions that provide a holistic view of the path to purchase, such as multi-touch attribution (MTA) and media mix modeling (MMM).
To begin optimizing your partnerships to drive incrementality, you should:
- Define Incrementality: Consider the KPIs most relevant to your brand.
- Establish a Measurement Plan: Document your plan, whether you use your platform’s reporting or a multi-touch attribution solution.
- Factor in EMV: Estimate the media value of affiliate-driven impressions and clicks that don’t directly convert.
- Incorporate Innovation: Use your partner marketing provider’s software to implement dynamic payment models that support your incrementality goals.
- Measure Success: Evaluate your results, test different methodologies, and iterate your strategy to achieve your desired outcomes.
Download our latest eBook, “Rethinking Incrementality in Affiliate Measurement,” to help be your guide to navigating this new reality. The guide offers actionable strategies for implementing an incrementality measurement plan, even if you have limited resources.