Incrementality: know your ad spend matters

Platform reporting is no longer accurate since iOS 14, and traditional attribution models often rely on last click, which is seriously misleading and limit marketers understanding of their campaigns true performance.

So, how can you know your ads are working?

Incrementality tests – also known as lift tests – show you the true value of your ads and how much you can afford to spend to acquire new customers.

What is incrementality testing?

Incrementality testing was born decades ago in catalogue marketing: send catalogues to 90% of your target addresses, measure orders from 100%, and then measure the difference in sales against a control group who weren’t sent the catalogues.

On paid social, this method will tell you the difference between running ads and not running, and therefore how much you should and can afford to buy users on any given platform.

These are the gold standard for testing and adjusting your paid social strategy. In the current economic landscape, this is essential for maximising business efficiency.

A/B testing with lift tests

Nest implements incrementality testing across our portfolio of clients to help understand where and how much they should invest to drive value from paid social. We also have a strong partnership with the marketing science team at Meta.

If you haven’t run lift tests, you should do so at once to make sure you are making the right investments.

Just make sure your team has the experience.

Nest has experience running lift tests across our client base of ecommerce brands. If you want to find out the true value of your ads, we can help you. Contact us here.

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