Original LinkedIn post
💡 Incrementality of Ad platform -reported conversions and revenue can vary significantly depending on the case.
We have seen a case where an incrementality test suggested that 5% of Ad platform -reported conversions were incremental. In a different case, the number was 80%.
This means that using raw Ad platform -reported ROAS in decision making, even in campaign comparison within the Ad platform, can be misleading.
What increases the likelihood that Ad platform-reported conversions are incremental:
⬆️ You start advertising to fresh new audiences or in a new geography
⬆️ You run prospecting campaigns targeting new customers
⬆️ You have a small number of Ad platforms in use (less double counting across ad platforms)
👉 To summarize: A high-growth brand where new customers represent majority of revenue
What decreases the likelihood that Ad platform-reported conversions are incremental:
⬇️ You are a mature brand with high market share
⬇️ You run retargeting campaigns targeting returning customers
⬇️ You a have high number of Ad platforms in use (lots of double counting across platforms)
👉 To summarize: An established brand where loyal customers represent majority of revenue