Have you ever wondered what the added value is of advertising on your brand name? Or showing retargeting ads? Wouldn’t these users convert anyway, even without marketing? There is one KPI that can tell you whether advertising on specific marketing channels is really a good idea: incremental value.

What is Incremental Value?

Incremental value is the value you generate as a result of a marketing message. You would therefore not generate this value if you turn off the marketing message. The incremental value is usually lower than your measured conversion value, and you can determine it at different levels. For example: per marketing channel, campaign or even per targeting setting.

A clear example is branded search. Customers who search VP Purchasing Officer Email Lists for your brand have a higher purchase intent. There is a good chance that this group will also buy a product from you without your Google Ads ad. For this you would like to make a correction in the bids that you give for these advertisements.

Impression channels also have a lower incremental value. Adchieve indicates that at large retailers the incremental value of display retargeting is between 3 and 7 percent. Many customers would therefore have already purchased your product without you showing them an advertisement.

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This value shows marketers a fair picture of the added value per marketing message.

How do you measure this value?

There are several ways you can measure incremental value. It always comes down to an experiment. In the control group you run your campaign, in your test group you don’t show anything. The difference between these two groups is the conversion uplift . The value of these conversions is the incremental value. If the groups measure an equal number of conversions, or if the test group (where you don’t show ad) measures more conversions, the campaign has no incremental value.

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