incrementality

Effective Performance Advertising 2/4: Incremental Value

This post is part of the series Crealytics Espresso Shot

Other posts in this series:

  1. Effective Performance Advertising 2/4: Incremental Value (Current)
  2. Effective Performance Advertising 3/4 : Measuring Revenue, Profit and ROI
  3. Effective Performance Advertising 1/4: Overview

Crealytics’ latest Effective PPC video has arrived. This series reveals game-changing perspectives on PPC advertising…in just a few minutes! Today’s video explains the concept of incremental value – and why you should consider it in your ad campaigns.

Online retailers use Return on Ad Spend (ROAS) as way to measure the efficiency of their Performance Advertising programs. This is ironic, as ROAS often works against business needs…and leads to poor budget allocation.

Our latest Espresso Shot video explains why industry best-practice is more flawed than you think. It also explains how switching from ROAS to Incremental ROAS (iROAS) is an important step in the evolution of Performance Advertising:

While the above video explores the basics of incremental ROAS, an open question remains: How can I quantify incremental revenues and iROAS?

At Crealytics we prefer to conduct incrementality tests, but they can take a long time. A more short-term, pragmatic solution is to start with educated estimates.

To get you started, download this free incrementality exercise. As well as a simplified case study, you’ll also receive an interactive spreadsheet to help you discover the incrementality of your own PPC campaigns.

Our next video shows you why you shouldn’t just focus on revenue when it comes to measuring your campaigns’ effectiveness.

And don’t forget – you you can always get Crealytics’ latest insights sent straight to your inbox.

 

Continue reading this series:

ABOUT THE AUTHOR


Alexander has several years of experience as an IT consultant and Product Owner in the e-commerce industry. Today he works as a Senior Product Manager for crealytics.

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