Understanding Incrementality in Affiliate Marketing: A Personal Guide

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When I hear the terms “incremental” and “incrementality” in affiliate marketing, I sometimes wonder if they truly reflect their intended meaning. Often, they don’t indicate an actual increase in sales, new customers, or revenue. Many affiliate marketers seem to focus only on the affiliate channel, overlooking the broader company impact.

I’ve learned to question whether sales would occur without an affiliate program to assess true incrementality. This helps me determine if a partner genuinely brings new customers and revenue or just diverts those already heading towards checkout.

High-intent traffic is frequently mistaken for incremental value. But just because someone is ready to make a purchase doesn’t mean this touchpoint wouldn’t exist without affiliates. For instance, a coupon site might target consumers already at checkout, simply searching for brand discounts on Google.

Closing an affiliate program today might mean touchpoints still occur without extra costs like commissions and fees. Sure, this traffic involves high intent—it’s consumers in the checkout line. Nonetheless, I might be losing money if the touchpoint provides low or no value.

Note: Not all coupon or deal sites are detrimental. Some might genuinely add value, so I always ensure to test if sales remain consistent without the program before deciding.

The more customers heading to my checkout, the more top-ranking affiliates on Google earn. They depend on intercepting my traffic, which is why they’re sometimes labeled as parasitic. This is where incrementality becomes crucial.

Do touchpoints that consistently occur without your program constitute incremental sales? It’s vital for me to define incremental sales and value clearly.

Incremental sales are those driven by partners, which wouldn’t occur without them. Incremental value arises when affiliates enhance customer value through means your company couldn’t achieve, like increasing cart size or building trust for more conversions.

As a brand, I can offer discounts without an affiliate program. Even without the program, I could submit deals to sites that rank for my brand + coupons, achieving similar sales without incurring network fees, commissions, or salary costs.

If partner-exclusive deals drive sales through unique platforms, it demonstrates incremental value. That’s something unattainable without them, making the affiliate an asset.

Dig deeper: Where affiliates can get traffic beyond Google search

Here are some content types and programs adding real incremental value.

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Product and brand comparisons

Product and brand comparisons represent two key areas where affiliates can drive value. The affiliate decides which brand or retailer secures the sale, influencing customer choices. For smaller brands, appearing in comparisons with major players can establish credibility and drive incremental revenue.

Affiliates who present unbiased comparisons and reviews cultivated trust, adding value and potentially broadening my customer base.

Tip: Utilizing non-affiliates for brand comparisons can be a more cost-effective strategy.

For instance, I might pay a one-time fee for an independent comparison versus ongoing affiliate commissions, potentially saving money long term.

Moreover, for a smaller brand, being included in comparative reviews can be a significant opportunity to weave into larger brand traffic and attract their customer base.

Types of partners that can offer this value include:

  • Review and comparison websites.
  • Listicle sites (SEO and PPC).
  • YouTubers.
  • Communities and forums with user-generated content and shopping guides.

When it comes to creators, both those who review and those who don’t, they possess unique content styles that can enhance incrementality.

Some creators add significant value simply through brand mentions and their trusted recommendations—whether they produce detailed reviews or provide other engaging content.

Ultimately, I’ve found that detailed data analysis and testing help me navigate what incrementality means for my business. This involves discerning between true incremental partners and those who merely capitalize on existing customer journeys.


Inspired by this post on Search Engine Land.


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FAQs

What does incrementality mean in affiliate marketing?

Incremental sales are those driven by partners that wouldn’t occur without them. Incremental value arises when affiliates enhance customer value in ways your company couldn’t achieve alone, such as increasing cart size or building trust for more conversions.

How can you tell if a partner truly brings new customers and revenue?

Question whether sales would occur without an affiliate program to assess true incrementality. This helps determine if a partner genuinely brings new customers and revenue or merely diverts existing ones heading toward checkout.

Can coupon or deal sites be valuable or detrimental?

Not all coupon or deal sites are detrimental. Some might genuinely add value, so test if sales remain consistent without the program before deciding.

What examples of content types and programs add real incremental value?

Examples include product and brand comparisons and unbiased reviews from trusted sources. Partners include review and comparison websites, listicle sites, YouTubers, and communities or forums with shopping guides.

Why is data analysis important for understanding incrementality?

Detailed data analysis and testing help determine what incrementality means for my business and distinguish true incremental partners from those who merely capitalize on existing customer journeys.

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