Tag: Incrementality

  • Why MMM Still Demands Clean Data and Human Judgment

    Why MMM Still Demands Clean Data and Human Judgment

    I see marketing mix modeling (MMM) becoming easier to access, but I do not think it has become easy to get right.

    After several conversations about MMM adoption, I keep hearing the same concern: “We believe in MMM, but we do not know how to get started.”

    My answer is that open-source platforms have lowered the barrier to entry in a meaningful way. What they have not lowered is the level of expertise required to produce results that are trustworthy, explainable, and useful for decision-making.

    Open-source MMM has changed the starting point

    I am seeing MMM adoption accelerate because marketers need more durable measurement methods. Almost half of U.S. marketers expect to invest more in MMM over the next year, and many now rank it as one of the most reliable measurement approaches available.

    The open-source shift is real. Three production-grade libraries now give teams a practical way to approach MMM across a wide methodological spectrum.

    • Robyn (Meta, R): I see this as the most approachable starting point because it includes automated hyperparameter search through Nevergrad, Pareto frontier model selection, decomposition, and response curve plots. It is also the one I use most often because it is highly customizable.
    • Meridian (Google, Python/TensorFlow): I view Meridian as a more rigorous option, especially because it uses Bayesian inference, geo-level priors, and principled uncertainty quantification. The tradeoff is a steeper learning curve.
    • PyMC-Marketing (PyMC Labs, Python): I consider this the most flexible path. It offers a full probabilistic model that comes closest to academic-grade Bayesian MMM, but it also demands the most statistical fluency.

    This generation of tools has removed the old $150,000 to $500,000 consulting gate that used to be the primary path into MMM. A team with R or Python expertise and reasonably clean historical data can now run a model in-house.

    Chart showing marketing mix modeling costs dropping from a $150k-$500k consulting gate to near-zero open-source tools while expertise needs stay high.
    Open-source R and Python tools have lowered the cost of starting with marketing mix modeling, but the expertise needed to produce trustworthy, actionable MMM remains the real ceiling.

    The caveat I always make explicit is this: “free tool” does not mean “free model.” The software may be free, but the domain expertise needed to configure it correctly is not. That expertise is a major part of the value.

    The vendor landscape is crowded and complicated

    I also see a fast-growing SaaS layer built on top of open-source MMM. To evaluate it clearly, I find it helpful to separate vendors into a few practical groups.

    Data-layer-first vendors

    Platforms like Rockerbox and Northbeam started with attribution and data collection, then added MMM. Their advantage is usually pipeline speed and data access, not deep modeling flexibility or customization.

    Measurement-first vendors

    Platforms such as Measured, Analytic Partners, Ekimetrics, and Nielsen Gracenote tend to offer more rigorous modeling and enterprise-grade capabilities, usually at a higher price point.

    Google Meridian and GA360

    I think Google’s decision to open-source Meridian is both a generous contribution to the field and a strategic move. When a walled garden funds and packages a measurement methodology that can be used to evaluate its own channels, I believe it is worth maintaining healthy skepticism about priors, defaults, and assumptions, even when the code is transparent.

    Chart comparing open-source marketing mix modeling libraries Robyn, Meridian, and PyMC-Marketing along a spectrum from approachable to statistically rigorous.
    Open-source MMM tools now span a clear trade-off: Robyn offers the most approachable starting point, Meridian adds Bayesian rigor, and PyMC-Marketing pushes deepest into statistical flexibility.

    The practical vendor question I keep coming back to is simple: who owns the data layer, and does that ownership create conflicts in the modeling layer?

    Challenge 1: Data access can quietly break MMM

    I think data access is the most underappreciated MMM implementation blocker. A well-specified model needs more than a quick export from a dashboard.

    • I usually want two to three years of weekly data as a baseline, so the model can capture at least two full seasonality cycles and enough spend variation to learn from.
    • I need consistent channel-level spend granularity, not just a broad “digital” bucket. Search, social, display, video, and other channels need to be separated.
    • I need offline channels such as TV, OOH, radio, events, and direct mail, even though they often live in different systems, belong to different teams, and use incompatible time periods.
    • I need external covariates, including macro indicators, competitor activity, pricing data, and product launch calendars.
    • For B2B, I often need even more history because longer sales cycles and lower conversion volumes make the data requirements more demanding.

    In practice, I often find that the real blocker is the six-week data archaeology project that happens before modeling begins. Finance owns revenue. The brand team owns TV. The agency owns digital spend. A spreadsheet from 2021 may be the only record of trade promotions.

    The model is only as good as the data archaeology behind it, and that is rarely the part anyone highlights in a vendor demo.

    Challenge 2: I still have to roll up my sleeves

    AI assistants have lowered the syntax barrier. They can scaffold a Robyn run, generate a Meridian configuration, or help debug a PyMC model. What they cannot reliably do yet is make the judgment calls that determine whether an MMM is credible.

    Futuristic data archive with glowing server-like filing cabinets, stacked documents, and network lights symbolizing AI marketing data infrastructure.
    Rows of illuminated data cabinets and paper files stretch into the distance, capturing the pressure on marketers to turn fragmented customer data into a smarter performance engine.
    • I still have to decide where to land on a Pareto frontier across hundreds of model solutions, balancing NRMSE against DECOMP.RSSD tradeoffs.
    • I still have to know whether Nevergrad’s optimizer has meaningfully converged or simply landed in a local minimum.
    • I still have to configure adstock transformation parameters, including Weibull shape and scale or geometric decay, so they reflect realistic channel behavior.
    • I still have to diagnose why a model gives a channel an implausible contribution and decide whether the fix is a prior, a data correction, or a variable exclusion.

    In other words, if I try to vibe code my way into MMM, I may end up with a model that appears to work but is wrong in ways I will not catch. The scripting is not the hardest part. The real work is validating the output, including using channel-specific incrementality experiments to calibrate the model.

    Challenge 3: Human expertise is not optional

    Even if the tools mature enough for AI to run a competent default MMM, I still see human expertise as essential. The irreplaceable work is encoding business context that no model can infer from the data alone.

    • Adstock and carryover context: I need to know whether a TV buy carries over for four weeks, paid search carries over for three days, or a brand awareness campaign decays over months. That knowledge usually lives with channel experts, not inside the dataset.
    • Saturation curve shape: I need to recognize when a channel is probably approaching diminishing returns before the model says so, and I need to question the model when it suggests something implausible.
    • Guardrails and anomaly handling: I need to explicitly model or flag COVID troughs, product launches, pricing shifts, and macro disruptions as structural breaks. AI does not automatically know a client had a pricing crisis in Q3 2022.
    • Interpretation sanity checks: If a model assigns 40% of contribution to TV for a brand spending $2 million on TV, I need the experience to say, “That feels wrong,” and investigate. That intuition is earned, not computed.
    • Organizational translation: A technically correct model has little value if I cannot explain why it recommends moving 15% of search budget to CTV in language a CMO and CFO will act on.

    I start with the groundwork before the model

    The best place to begin is not the model itself. I start by understanding what data is needed, who owns it, and who can help interpret it in the context of real marketing decisions.

    None of that is quick or easy, but it is essential if I want meaningful insight from MMM, whether I choose an open-source library or a subscription-based platform.

    As a practical first step, I would download Robyn’s demo script and experiment with sample data before applying MMM to my own business data. That kind of hands-on testing makes the strengths, limits, and judgment calls much clearer.


    Inspired by this post on Search Engine Land.


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  • Microsoft PMax Experiments: Smarter Testing Arrives

    Microsoft PMax Experiments: Smarter Testing Arrives

    I’m seeing Microsoft bring experimentation into Performance Max campaigns, giving advertisers a more practical way to test campaign changes and measure incremental impact without disrupting live performance.

    What’s new: Microsoft is adding two Performance Max experiment types designed to help advertisers understand whether their campaigns are truly driving better results.

    Uplift experiments help me measure the incremental impact of Performance Max campaigns by comparing results against a control group.

    Upgrade experiments give me a way to compare an existing campaign with an upgraded Performance Max version before I fully roll out the change.

    For eligible accounts, both experiment types are available under Campaigns > Experiments.

    Why I care: Until now, Microsoft Ads experiments were limited to Search campaigns. Bringing testing into Performance Max gives advertisers a safer path to validate changes, improve performance, and make more data-driven decisions before committing budget.

    Image

    Between the lines: As Microsoft expands experimentation, it has also renamed its existing experiment offering to Search optimization experiments. That distinction helps separate traditional Search testing from the new Performance Max testing capabilities.

    I see this as part of Microsoft’s broader push to give advertisers more advanced optimization tools across automated campaign formats.

    The bottom line: Microsoft is closing an important gap in its Performance Max offering. With dedicated uplift and upgrade experiments, advertisers can test with more confidence and get a clearer view of the real impact of automated campaigns.

    First spotted: The help docs were spotted by PPC News Feed founder Hana Kobzová.

    Dig deeper: Microsoft’s help docs include details on the Uplift experiment for Performance Max and the Upgrade experiment for Performance Max.


    Inspired by this post on Search Engine Land.


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  • Decoding the Discrepancies in Ads, Analytics, and CRM Data

    Decoding the Discrepancies in Ads, Analytics, and CRM Data

    Planning PPC budgets was never straightforward for me, especially when facing differing data from Google Ads, Meta Ads, GA4, and my CRM/CMS. I often ask myself, what numbers should I actually report, and how can I ensure I’m optimizing for a genuine impact?

    Like many, I believed better tracking, cleaner UTMs, or a refined analytics setup might solve the problem. But often, it’s something else entirely—the attribution trap.

    We’ve been taught to rely on data-driven marketing. Ideally, analytics tools clarify what’s effective if configured right. But is it enough to just follow the data?

    Attribution can be misleading. Without a solid framework, I find myself making budget decisions based on incomplete insights, potentially damaging the business.

    Let’s consider: Attribution assigns conversion credit to channels, which is useful, but it doesn’t reveal which channels actually drove those conversions.

    This may sound academic, but understanding it is crucial for solving the measurement puzzle. I’ll explore why attribution fails, how to use existing data effectively, and if incrementality testing is necessary.

    Why ads, analytics, and CRM numbers never match

    Aligning ad networks, GA4, and CRM data seems impossible. These systems serve different purposes, follow different methodologies, and measure distinct moments in the customer journey.

    Your customer journey as a framework

    Picture someone clicks on a Meta ad, sees retargeting on YouTube, then Googles the brand before buying—all in a week.

    With standard attribution windows, both Meta and Google Ads report one conversion. GA4 and my CRM also show one, likely crediting Google Ads paid search.

    Did Meta create a “duplicate” conversion? No. Meta can’t see Google Ads interactions, so it can’t detect duplicates.

    GA4 and CRM probably ignore Meta Ads. Should I move Meta Ads budget to Google Ads branded search based on that? Probably not.

    Structural differences as diagnosis enhancers

    It doesn’t end there:

    • Attribution date: Ad platforms credit conversions on the click day, whereas GA4 and CRMs report based on conversion day, leading to discrepancies with long customer journeys.
    • Cross-device behavior: Different devices for interactions lead to CRM discrepancies if users aren’t merged correctly.
    • Privacy restrictions: Ad blockers and cookie consents prevent some conversion tracking, and ad networks use modeled conversions to fill these gaps, unlike CRMs.

    Some issues are fixable with better configuration, such as server-side tagging, offline conversion imports, and consistent UTMs. However, structural differences mean expecting full correlation is unrealistic.

    Your single source of truth: The attribution trap

    Once I accepted the number disparities, my next temptation was choosing a single source of truth, often GA4 or CRM, and relying on it. That’s where the attribution trap snaps shut.

    Every tool uses an attribution model. Regardless of model—be it first-click, last-click, linear, time decay, or data-driven—they all have limitations.

    Every attribution model has blind spots

    • Last-click. Although easy to understand, it’s easy to exploit by rewarding the final touchpoint and undervaluing demand generation.
    • First-click. It rewards discovery but ignores what convinces a customer to convert.
    • Linear and time-decay. While they seem balanced, they’re quite arbitrary, as customer journeys don’t follow strict rules.
    • Data-driven. Despite its sophistication, its mechanisms remain opaque, perpetuating a “black box” issue.

    What happens depending on your source of truth

    Hopefully, you now grasp the deeper issue: attribution addresses which touchpoints deserve credit once a conversion occurs. Relying solely on one tool means you can’t escape the attribution model’s blind spots.

    If I depend solely on my CRM, I fall into the last-click attribution pit, often focusing on branded search. Over time, I might see demand decline despite strong results from my chosen source of truth.

    Conversely, depending only on ad platform data means inflated results reporting, showing 2x to 4x more revenue than finance actually sees, resulting in increased marketing budgets while finance calls for cuts.

    GA4 seems mature, but it only captures on-site customer journeys, missing awareness campaigns that might not result in website visits.

    Realizing each tool’s fundamental flaws will lead someone to suggest incrementality testing — Did this campaign drive otherwise impossible conversions?

    Incrementality tests: The perfect solution?

    Incrementality measures results from your campaign — conversions that wouldn’t have existed without it.

    Think of two worlds: one where the ad ran, the other where it didn’t. The difference between these worlds is your incremental impact. Everything else is baseline activity.

    Attribution vs. incrementality

    This distinction is crucial. Many reported conversions, especially from retargeting and branded search, are from individuals who would have converted anyway.

    An ad followed by a conversion doesn’t guarantee the ad caused it. Incrementality testing measures the real credit.

    For budgeting, distinguishing between true conversion drivers and illusions is vital.

    A retargeting campaign showing strong ROAS might deliver little incremental value. If I cut it, conversions barely change; keeping it means paying for illusory performance.

    How to test for incrementality

    Testing incrementality involves experiments with two groups: one exposed to the ad and one that isn’t. Here are some typical methods:

    • Geo holdout. Compare regions where campaigns run versus those where they don’t and observe conversion differences.
    • Audience holdout. Platforms like Google and Meta allow excluding portions of the target audience from ad exposure, then measuring outcome differences.
    • Time-based testing. Temporarily halt campaigns to assess changes in conversion volumes, though this method carries risks like seasonal effects blurring results.

    Is incrementality right for you?

    For those managing large budgets — say €1 million per month — you’re likely familiar with these tests. But what if you’re running a smaller operation?

    At this scale, incrementality can be impractical as reliable tests demand meaningful test and control group distinctions, necessitating significant data and spend.

    Nonetheless, I can use shortcuts, particularly around branded search, to spot potential problem areas.

    Triangulation: The actionable decision-making process

    Considering attribution limitations and incrementality tests for big advertisers only, I rely on triangulation.

    Utilize existing tools, acknowledging their imperfections, and educate clients or leaders on not sticking to a “single source of truth.”

    Start with your CRM/CMS

    These systems track genuine deals and revenue. Treat all other figures as explanatory attempts.

    If the ad platforms together show $50K revenue while Shopify reports $35K, trust Shopify as it reflects reality.

    It can even differentiate conversions from new versus returning customers, crucial for measuring nCAC.

    Overlay my customer journey onto ad platform results to understand campaign impacts along the journey, using available incrementality tests to decide budget allocation better.

    Improve on triangulation

    Attribution windows: Long customer journeys challenge interpretation. Segment campaigns by customer journey stages, and shrink attribution windows to improve outcomes.

    Track ratios: Keep the gap between ad platform conversions and CRM data consistent. Sudden changes might reveal an incrementality insight.

    Triangulation won’t provide clean numbers. But it will deliver a consistent decision-making framework, far superior to false precision.

    Welcome to the real world

    The teams that struggle the most force three systems into one report or search for the ultimate, fair attribution model.

    Teams making informed decisions embrace complexity over a single truth, fostering data skills to match reality’s complexities.

    Ensuring our decision-making stays realistic and accommodating of uncertainties makes all the difference.


    Inspired by this post on Search Engine Land.


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  • Unlock Demand Gen’s Potential: Test Creative Impact with Uplift

    Unlock Demand Gen’s Potential: Test Creative Impact with Uplift

    I often find that platform reporting can lead me astray when trying to gauge the real impact of Demand Gen creative. To get a clear picture, conducting controlled experiments can validate if my creative work genuinely boosts conversions.

    Demand Gen campaigns shine across YouTube, Discover, and Gmail, but they also bring a challenge—what I call the “attribution illusion.” It’s frequent for me to question whether reported conversions are truly incremental or if users would have converted through search regardless.

    Google introduced asset uplift experiments in November, allowing me to measure the impact of my Demand Gen creative using an A/B split test. This feature helps replace assumptions with clearer insights into what’s truly driving results.

    Relying heavily on creative instinct or standard reporting can misdirect efforts and waste valuable resources on underperforming assets. Google’s A/B testing capabilities empower me to isolate the impact of individual assets, preventing such outcomes.

    Why attribution doesn’t equal incrementality

    For example, if someone views a Demand Gen ad on YouTube but doesn’t click, only to search for my brand later and convert, Google might still credit the Demand Gen campaign. This attribution reflects correlation more than causation.

    To measure accurately, I need to understand the scenario without showing the creative. Withholding test assets from a portion of the target audience helps establish a baseline.

    The difference in conversion rates, or any key KPI between groups exposed to the ad and those not, reveals the actual incremental lift the creative drives.

    Dig deeper: Why incrementality is the only metric that proves marketing’s real impact

    What you need before testing creative uplift

    Launching experiments without enough data for statistical significance is a common misstep. Before testing, I ensure campaigns meet necessary prerequisites to avoid inconclusive or invalid results.

    Conversion volume

    Google suggests having at least 50 conversions across test groups during the experiment for accurate lift measurement. If primary conversions fall short, I consider optimizing the test around micro-conversions like “Add to Cart.”

    Budget minimums

    Experiments require continuous, uninterrupted spending. A limited budget stopping my campaign early skews data for the control group.

    The campaign budget must be sufficient to run for at least four weeks or until statistically significant results are achieved.

    Creative isolation

    ```json
{
  "alt": "The CapmatchOne logo with a gradient circle and bold text.",
  "caption": "Discover innovation with the CapmatchOne logo, featuring sleek typography and a modern gradient circle.",
  "description": "The CapmatchOne logo features bold, modern typography coupled with a gradient circle, symbolizing connection and innovation. The sleek design conveys a sense of progress and creativity. This image can be used for branding or promotional purposes, appealing to audiences interested in innovative solutions and forward-thinking designs."
}
```

    I test one new variable at a time to determine if a specific asset drives uplift, keeping all other campaign elements unchanged.

    Dig deeper: Why Demand Gen is the most underrated campaign type in Google Ads

    How to run an asset uplift test in Google Ads

    Running a creative uplift test in Google Ads is now more streamlined. Here’s how I set up a valid experiment.

    1. Define a clear hypothesis

    Each scientific test starts with a clear hypothesis. I avoid tests without defined objectives. For example:

    • Bad hypothesis: “Let’s see if our new video works.”
    • Good hypothesis: “Adding user-generated content (UGC) to our Demand Gen asset group will drive a 10% incremental lift in ‘purchase’ conversions compared to standard static image carousels.”

    Navigate to the Experiments interface

    In my Google Ads account, I navigate to Campaigns > Experiments. I create a new experiment, selecting Asset tests provided by you for a Demand Gen campaign.

    Configure a 50/50 split

    I define a 50/50 cookie-based split to ensure both groups have equal historical data and algorithm weighting, preventing users from being in both test arms.

    My existing campaign becomes the control, and the new asset campaign serves as the treatment.

    Lock your variables

    Once started, I practice extreme discipline by not altering audiences, targeting, or making drastic bid and budget changes.

    Any changes during the test can introduce noise, affecting the statistical significance of results.

    Set the duration

    ```json
{
  "alt": "Screenshot showing options to choose experiment type and variables to test in a digital advertising platform.",
  "caption": "Explore different experiment types and variables to optimize your digital advertising strategy with this intuitive interface.",
  "description": "This image is a screenshot of a digital advertising platform interface where users can choose experiment types such as 'Campaign features', 'Assets', 'Campaign types', and 'Custom'. Further options allow for selection of variables to test, like 'Final URL expansion', 'Assets provided by you', and 'Ad variations'. Users can select their campaign type from 'App', 'Demand Gen', 'Performance Max', or 'Video'. The interface is designed for optimizing ad performance and testing creative assets such as text, images, and videos."
}
```

    I run experiments for at least four weeks. Week 1 is a learning period, and Weeks 2 to 4 provide actionable data.

    Longer conversion cycles in B2B SaaS might require six to eight weeks.

    Dig deeper: What it takes to make demand gen work for B2B and ecommerce

    What your experiment results actually mean

    Upon completion, I review the Experiments dashboard for each arm’s performance and confidence intervals across metrics to validate my hypothesis.

    Outcome 1: Positive lift (statistically significant)

    A positive lift with 95% confidence means my creative asset adds real value. I calculate incremental cost per acquisition (iCPA) by dividing the treatment group’s ad spend by incremental conversions over the control.

    This iCPA becomes my benchmark for further scaling.

    Outcome 2: Negative lift

    Creatives may underperform, perhaps being too disruptive or skipped in ads. Pausing these assets is crucial to let data direct budget choices over personal preference.

    Outcome 3: Inconclusive result

    If results are negligible and don’t confidently attribute conversions after four weeks, I might extend the test for more data. If still inconclusive, trying a drastically different creative asset is my next step.

    Prove creative impact with incrementality testing

    Creative remains a powerful differentiator for performance. Creating high-quality video or UGC is one thing, but proving its impact with scientific rigor strengthens my creative decisions.

    Asset uplift experiments provide evidence of Demand Gen’s budget worthiness to stakeholders. When I start with a holdout test, establish a baseline, and let data guide my creative roadmap, the results speak for themselves.

    Dig deeper: The Google Ads Demand Gen playbook


    Inspired by this post on Search Engine Land.


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  • Is Your ROAS Truly Fueling Business Growth?

    Is Your ROAS Truly Fueling Business Growth?

    I’ve often marveled at high ROAS numbers during my campaigns, thinking they spell success. But, is this performance truly driving growth?

    High ROAS numbers can be misleading, often masking mere demand capture rather than creation. To accurately assess growth, I focus on incrementality and marginal ROAS to guide more effective spending strategies.

    An ecommerce company once collaborated with my PPC agency, eager to delve into the world of paid search. We crafted a robust plan that quickly led to impressive results: high conversion figures and a commendable ROAS.

    It seemed like a strategy success story at first glance. However, when I took a closer look, I noticed something crucial.

    Some conversions might have transpired naturally through direct or organic search channels, suggesting our campaigns perhaps weren’t spurring actual growth. This is a vital aspect that often remains unexamined. To gain genuine insight into performance, I examine incremental lift alongside marginal ROAS.

    The truth about ROAS

    I recall hearing about eBay’s paid search experiment. They heavily invested in brand PPC ads, only to later conduct controlled tests by pausing these ads for certain users, measuring their impact.

    Much of the conversion was absorbed by organic traffic, scarcely affecting revenue. Yet, intriguingly, eBay reactivated the branded ads. Whether this was driven by fear or wisdom, I ponder the implications.

    As automated search and multi-touchpoint customer journeys evolve, accurately attributing conversions to their channels becomes increasingly complex. Advert platforms often claim the credit, but adopting a skeptical view towards these reports is invaluable.

    I comprehend that what these platforms report as attributed return doesn’t necessarily equate to causal lift. While ROAS indicates platform-influenced revenue, it falls short in revealing how much revenue would have materialized regardless of the ads.

    With tools like Performance Max and Advantage+, platforms excel in optimizing conversion avenues, often not discovering new clientele but instead marking the costliest touchpoints in pre-determined conversion paths.

    In the absence of incrementality assessment, automation tends to amplify non-incremental signals: capturing existing demand through brand search campaigns, retargeting nearly-converting users, and creating falsely “safe” channel reports.

    Dig deeper: Paid media efficiency: How to cut waste and improve ROAS

    Incrementality tells you whether marketing created something extra

    By analyzing incrementality, I can determine how the campaign wrought changes it wouldn’t have caused otherwise, typically through comparisons of exposed groups with control groups. This reveals the actual organizational impact of the campaign.

    Recognizing this might feel uncomfortable, yet it serves as a more precise lens for budget allocations than superficial platform attributions.

    Sometimes, even a seemingly successful channel in-platform ROI might not equate to impactful incremental growth. Often, it merely realizes existing demand rather than inventing it.

    If I truly wish to ascertain if a campaign drives genuine growth, the incrementality factor must become my focal question.

    Despite being vital, incrementality only provides part of the picture. The necessity for marginal ROAS to chart subsequent steps can’t be overstated.

    Dig deeper: Why incrementality is the only metric that proves marketing’s real impact

    Marginal ROAS tells you what to do next

    An incremental channel alone doesn’t specify where the next budget investment should proceed. Understanding marginal ROAS is essential here.

    The marginal ROAS examines the revenue from an additional unit of spend, surpassing the average ROI across all expenses. Often, initial budget allocations perform well but subsequently deliver diminishing results.

    As investments continue, dollars spent towards the end become disproportionately less efficient. This principle also holds true for CPA metrics: a blended CPA might appear satisfactory while the terminal dollars spent demonstrate poor efficiency, luring advertisers beyond optimum bidding zones.

    I consider an example where an initial $10,000 budget generates $50,000 in revenue (500% ROAS). Deciding to expand, I then invest an additional $5,000, only to generate an incremental $5,000 revenue.

    • Your new average ROAS: 366% 
    • Your marginal ROAS: 100% (Essentially a $1-to-$1 trade.)

    In such instances, the final $5,000 expenditure was ineffective, despite overall acceptable “average” performance on dashboards.

    This highlights the folly of focusing solely on average ROAS. It can obscure the genuine scalability that might only be viable at lower spend levels, misleadingly disguising profitable demand capture as flawed incremental expansion.

    Informed decision-making requires peering deeper: platform ROAS aids in optimizing in-platform efforts, incrementality assesses campaign-generated value, while marginal ROAS indicates where the ensuing budgets should be directed.

    A robust ROAS can reflect true efficiency or merely illustrate a platform ensnaring already-converting demand. Hence, incrementality tests form the cornerstone of my analysis.

    My critical inquiry is not whether a channel is efficient per se, but whether subsequent dollars are sufficiently efficient. This understanding is essential for prudent scaling.

    Dig deeper: The marketing measurement flywheel: A 4-step framework for proving impact

    Options for incrementality testing

    Embarking on incrementality testing doesn’t require a flawless measurement lab. Utilizing geo tests, holdouts, audience exclusions, and controlled spending reduction can enhance understanding far beyond another month spent in attribution debates.

    • Geo-split testing: Organize markets into dual comparable geographic groups, maintaining ad runs in a “test” grouping while halting them in a “control” group. Revenue disparities between these regions unveil the genuine incremental lift of your ads.
    • Search lift tests (holdouts): Leverage platform tools to generate holdout groups, excluding a small user fraction from ad exposure. The behavioral contrasts between them and exposed groups unveil Search or YouTube campaign direct impacts.

    Furthermore, investigating remarketing, branding, awareness campaigns, or supplementary social channels can reveal additional insights.

    The real shift: From reporting performance to allocating capital

    For too long, marketing teams have restricted measurement to explaining past events. The optimal application lies in shaping future endeavors effectively.

    Incrementality helps me discern value creation within a channel, while marginal ROAS justifies additional investments. Together, they elevate marketing measurement from mere reporting to informed capital allocation.

    ROAS demonstrates credit allocation, incrementality pinpoints actual transactional changes, and marginal ROAS guides subsequent budgeting. It’s crucial to remember that incrementality differs from attribution. While attribution awards channel credit, incrementality evaluates whether this pursuit justified itself.

    Dig deeper: How to take your marketing measurement from crawl to sprint


    Inspired by this post on Search Engine Land.


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  • Transform Your Marketing Measurement from Basic to Brilliant

    Transform Your Marketing Measurement from Basic to Brilliant

    I’ve discovered that measurement is truly the cornerstone for all we achieve in performance marketing. Without precise measurement, everything I recommend, implement, and optimize becomes mere speculation. Today, maintaining accurate measurement is more challenging than ever—and it’s only getting more difficult.

    With regulatory crackdowns and growing privacy concerns, paired with elongated multi-touch journeys, we face a measurement crisis. Brands that still rely on outdated tactics are missing the mark when it comes to modern measurement challenges.

    If your brand falls into this category, it’s time I help you rebuild your measurement foundation—from integrating first-party data (crawl), to creating cross-channel reporting for actionable insights (walk), to advanced media mix modeling (MMM) and incrementality testing for true media lift (run).

    The crawl: Building a first-party data foundation

    By integrating first-party data into our performance marketing channels, I can move beyond reliance on third-party signals. While those metrics offer surface-level insights, they don’t reveal how channels impact our business goals.

    Audience integration

    The first step involves integrating CRM data into our paid media platforms. This includes:

    • Remarketing to abandoners.
    • Creating exclusion lists for current subscribers or recent purchasers.
    • Compiling priority contact lists.

    I might be uploading lists today, but integration enhances targeting by connecting to up-to-date audience lists for media platform targeting.

    Offline-conversion tracking

    For lead-gen businesses like ours, setting up offline conversion tracking (OCT) is crucial. It reveals the bottom-line impact of our media on sales, passing sales data back to platforms for campaign attribution.

    Once OCT is in place, we can optimize for lower-funnel, higher-quality conversion steps in the sales cycle or even begin optimizing toward revenue to enhance our return on ad spend.

    To progress from crawl to walk, I need to move from client-side to server-side tracking.

    By adopting server-side tracking, we bypass browser-based tracking and instead rely on our first-party data. This approach ensures data accuracy and resilience as privacy restrictions increase and cookies become obsolete.

    • Partner integration uses pre-built connectors for setup through platforms like Shopify or Google Tag Manager.
    • Direct API requires a development team to handle complex data or custom backends.

    The walk: Cross-channel reporting integration

    ```json
{
  "alt": "The CapmatchOne logo with a gradient circle and bold text.",
  "caption": "Discover innovation with the CapmatchOne logo, featuring sleek typography and a modern gradient circle.",
  "description": "The CapmatchOne logo features bold, modern typography coupled with a gradient circle, symbolizing connection and innovation. The sleek design conveys a sense of progress and creativity. This image can be used for branding or promotional purposes, appealing to audiences interested in innovative solutions and forward-thinking designs."
}
```

    With a robust measurement foundation, my next step is breaking down platform silos to understand the full ecosystem.

    Going beyond last click

    After implementing server-side tracking, I created a clean data pipeline. Yet, traditional attribution models neglect the full-funnel customer journey.

    To address this, I recommend using data warehousing solutions like BigQuery to centralize your data and apply custom logic, thereby gaining insights across the ecosystem.

    Unified reporting dashboards

    Integrating evolved attribution with unified reporting dashboards, like Looker Studio, allows me to visualize data across the funnel and obtain actionable insights into what platforms are truly driving volume and conversions.

    The run: Media mix modeling and incrementality testing

    With a comprehensive, everyday view of performance, significant questions persist about growth potential and offline performance measurement.

    By employing media mix modeling and incrementality testing, I can discern the full impact of media investments at a macro level to make informed decisions.

    The holistic view through MMM

    I view MMM as my compass, providing a holistic, quantitative guide for paid media investments, helping me analyze the relationship between inputs and business outcomes.

    Pulse checks with incrementality testing

    Incrementality testing offers validation for MMM and helps evaluate if specific tactics or channels are driving true incremental lift by comparing test and control groups.

    The sprint: Clean, integrated, and validated first-party data

    With first-party data integrated through server-side tracking and cross-channel reporting, I’ve built a robust measurement foundation. Guided by MMM and validated by incrementality testing, I’m now ready to sprint towards a more informed and successful marketing strategy.


    Inspired by this post on Search Engine Land.


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  • Understanding Incrementality in Affiliate Marketing: A Personal Guide

    Understanding Incrementality in Affiliate Marketing: A Personal Guide

    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.

    ```json
{
  "alt": "The CapmatchOne logo with a gradient circle and bold text.",
  "caption": "Discover innovation with the CapmatchOne logo, featuring sleek typography and a modern gradient circle.",
  "description": "The CapmatchOne logo features bold, modern typography coupled with a gradient circle, symbolizing connection and innovation. The sleek design conveys a sense of progress and creativity. This image can be used for branding or promotional purposes, appealing to audiences interested in innovative solutions and forward-thinking designs."
}
```

    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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  • Mastering Marketing Impact: The Complete 4-Step Cycle

    Mastering Marketing Impact: The Complete 4-Step Cycle

    The marketing measurement flywheel- A 4-step framework for proving impact

    I’ve learned that as AI-driven searches and fragmented media reshape brand discovery, the outdated “set it and forget it” mindset in marketing measurement is no longer effective.

    Understanding impact isn’t just about watching dashboard data. Strategically, measurement is a dynamic feedback loop, guiding ad platform adjustments, which then yields better results and insights for my business.

    Allow me to share how I construct a measurement flywheel that propels my growth efficiently.

    The 4-step measurement cycle

    Imagine, like me, you’re managing a Bay Area SaaS company, PowerLoop, specializing in AI-powered analytics. Heavy investments in Google Search, LinkedIn, and AI publication sponsorships are underway.

    However, Google Ads boasts impressive ROAS, yet our CRM signals a critical gap: leads and opportunities aren’t directly traceable to specific campaigns, making it tricky to demonstrate marketing’s true board-level impact.

    ```json
{
  "alt": "Bar chart showing channel incrementality multipliers for various platforms like YouTube and LinkedIn.",
  "caption": "Explore how different marketing channels like YouTube and Facebook stack up in terms of incrementality multiplier, offering insights into their effectiveness.",
  "description": "This bar chart illustrates the channel incrementality multiplier for various platforms, including YouTube, LinkedIn, and Google services. Each channel is categorized and assigned a multiplier value, indicating its relative effectiveness. Sections are divided into numeric groups for clearer comparison. The chart is produced by Blackbird PPC, emphasizing strategic marketing insights."
}
```

    1. Platform ROAS

    With Platform ROAS, I dive into platform data—be it Google Ads or Meta—powered by pixel and conversion APIs. Though beneficial for real-time optimization, platforms generally accentuate their impact.

    At PowerLoop, Google Ads reports a $50 CPA, aligning well with targets, yet LinkedIn’s engagement doesn’t fully equate to conversions, raising concerns about unattributed leads.

    Dig deeper: How to avoid marketing mix modeling mistakes that derail results

    2. Back-end ROAS

    The next phase, Back-end ROAS, leverages CRM intelligence—Salesforce, Shopify, etc.—linking ad investment to tangible database outcomes, crucial for filtering out ‘noise’ like refunds and fake leads.

    In practical terms, PowerLoop reveals that many Google-signups were either incomplete or out-of-target market, prompting adjustments in targeting and campaign focus on LinkedIn.

    ```json
{
  "alt": "Graph showing marginal efficiency with high and low mROAS for varying ad spend.",
  "caption": "Explore the Marginal Efficiency Example: Visualizing how ad spend affects revenue with different mROAS levels. Understand the balance between maximizing revenue and efficiency.",
  "description": "This graph illustrates the 'Marginal Efficiency Example,' depicting changes in revenue as ad spend increases. Two curves represent 'Incremental Revenue' and 'Backend Revenue,' indicating high and low mROAS scenarios. The graph highlights how revenue expectations shift depending on scaling strategies. Key insights include understanding the potential for higher returns with optimal ad spend adjustments. The graph is sourced from Blackbird PPC."
}
```

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    MktoForms2.loadForm(“https://app-sj02.marketo.com”, “727-ZQE-044”, 16298, function(form) { });

    3. Incremental ROAS (iROAS)

    iROAS tackles the “So what?”—unveiling the sales truly impacted by ads through mix modeling and incrementality tests, like geo-lift or holdout tests.

    In practice, PowerLoop’s geo-lift experiment reveals Google Ads’ limited incremental impact compared to the potent brand awareness uplift from AI sponsorships.

    Dig deeper: Why incrementality is the only metric that proves marketing’s real impact

    4. Marginal ROAS (mROAS)

    Finally, Marginal ROAS guides my decision on where to allocate the next dollar, as channels reach efficiency peaks following the law of diminishing returns.

    Analyzing PowerLoop’s spend, I observe that while Google’s spend plateaus, AI sponsorships yield untapped growth and potential, urging a budget reallocation.

    ```json
{
  "alt": "Circular diagram illustrating the Marketing Impact Measurement Cycle with marginal, platform, backend, and incremental elements.",
  "caption": "Explore the Marketing Impact Measurement Cycle: a comprehensive approach to understanding platform, backend, marginal, and incremental impacts for strategic growth.",
  "description": "This image depicts a circular diagram titled 'Marketing Impact Measurement Cycle'. It highlights four key areas: Marginal (Scale), Platform (Real-time), Backend (First-Party), and Incremental (Truth). Each section is represented with icons for quick reference. The diagram suggests a continuous process, emphasizing strategic aspects in measuring marketing impact. Useful for marketers seeking frameworks for assessing and optimizing their campaigns. Keywords: marketing, measurement, strategy, optimization."
}
```

    Why the cycle never ends

    In truth, marketing measurement is a continual evolution, always grappling with the ever-fluctuating landscape, be it Google strategies today or ChatGPT impacts tomorrow.

    I’ve embraced this at PowerLoop, adapting to new channels with an openness knowing past success doesn’t guarantee future outcomes, especially when relying solely on platform data risks wastage.

    The objective isn’t finding a fixed ideal number, but maintaining agility, using iROAS and mROAS signals to drive innovation and efficiency across campaigns and channels.

    Dig deeper: Break down data silos: How integrated analytics reveals marketing impact


    Inspired by this post on Search Engine Land.


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