CourseIncrementality - Proving Your Marketing Actually WorksThe Incrementality Mindset for Budget Decisions
intermediate
4 min read
The Incrementality Mindset for Budget Decisions
How incrementality transforms ROI evaluation and scaling decisions
Incrementality transforms how you think about ROI:
• • •
Without incrementality
- Spend: $10,000
- Attributed conversions: 500
- Attributed CPA: $20
- If LTV is $60, this looks great (3x return)
With incrementality (showing 40% incremental lift)
- Spend: $10,000
- Incremental conversions: 200 (40% of 500)
- Incremental CPA: $50
- If LTV is $60, this is marginal (1.2x return)
• • •
The campaign still works, but it's nowhere near as good as attribution suggested. This changes your scaling decision.
“Having the finance department and C-suite recognize you are a marketer who cares how you are spending the company's money, and that you are spending it well, will go a long way.”— Alex Schultz, Click Here(source)