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Glossary · Measurement

Incrementality

The share of conversions that happened because of the spend, against those that would have occurred anyway. High reported ROAS with low incrementality means you are paying for sales you already had.

  • Reviewed
  • 3 min read
  • Part of the 14 term glossary
  • Median finding $58k a year across 74 audits
01

What Incrementality means

Incrementality is the share of results that happened because of a piece of marketing, as opposed to the results that would have happened anyway. A holdout test makes the split visible: if a campaign is credited with 1,000 sales and 850 of those buyers would have bought without it, the campaign's incremental contribution is 150 sales, and those 150 are the only ones its budget actually bought.

It answers a different question from attribution. Attribution asks which touchpoint a sale should be credited to; incrementality asks whether the sale needed the touchpoint at all. Every platform can attribute a sale to itself, and none of them can tell you, from inside its own dashboard, whether the customer would have come anyway. Only a comparison against a group that did not see the spend can.

02

The Incrementality formula and a worked example

The formula and an illustration; the corpus line is the audited figure behind it.

Incremental share = (exposed conversions − holdout conversions) ÷ exposed conversions

Worked example Illustration, not a client figure

A geo holdout: exposed regions convert 1,000 times, matched holdout regions 850. Only 150 of the 1,000 conversions, 15%, were incremental. The platform reported all 1,000.

03

Why Incrementality matters in an audit

Incrementality is the test behind most of the audit's paid media findings. The method is a holdout: pause the spend in matched regions, or withhold it from a random share of the audience, and compare the results with and without it. The difference is the incremental result, and the share of the reported result that survives without the spend is the part the budget never needed to buy.

It matters because the campaigns with the best reported returns are often the least incremental. Branded search, retargeting, affiliate and win back campaigns reach people who are already on their way, so they convert well and add little. Non incremental paid spend appeared in 68% of the 74 audits, the most common finding in the corpus, and every one of those findings rests on an incrementality test.

The idea reaches beyond media. A loyalty scheme is incremental only if the repeat purchases it rewards would not have happened anyway; an annual plan discount is worth its cost only if it prevents more churn than it gives away; a sponsorship pays only if it moves something measurable. The published cases below apply the same test to each.

06

Questions about Incrementality

What is incrementality in marketing?

Incrementality is the share of conversions that happened because of the marketing, measured against a comparison group that did not see it. Conversions that would have happened anyway are not incremental, however a platform attributes them.

How do you measure incrementality?

With a holdout. Withhold the spend from matched regions or a random share of the audience and compare the results. If exposed regions convert 1,000 times and matched holdout regions 850, 150 conversions were incremental, an incremental share of 15%, while the platform reported all 1,000.

What is the difference between incrementality and attribution?

Attribution decides which touchpoint gets the credit for a sale. Incrementality asks whether the sale needed the touchpoint at all. A campaign can be credited with every sale it touched and still be mostly non incremental, which is why the audit tests rather than reattributes. Read the non incremental spend page →

Know the term. Now measure it in your own numbers.

Incrementality, measured against your own accounts in 5 to 7 working days. $10k to $50k of findings, or your money back.

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