❓ Why is understanding the true incrementality of marketing important?
Let's take a hypothetical example. You're running prospecting and retargeting campaigns on a social media platform, and getting the following ROAS report from the platform:
👉 ROAS of Prospecting campaigns: 9
👉 ROAS of Retargeting campaigns: 9
In this example, it seems that prospecting and retargeting have similar returns.
However, after reading about MMM and incrementality in Google's latest Modern Measurement Playbook, you decide to analyze marketing's effectiveness also with an incrementality test -calibrated Marketing Mix Model. MMM reports you the following:
👉 ROI of Prospecting campaigns: 4
👉 ROI of Retargeting campaigns: 2
You're surprised - this gives a completely different picture on the level of ROI, but also how prospecting and retargeting campaigns compare against each other.
What's the difference between these effectiveness metrics? MMM captures the true incremental sales from marketing, whereas ad platform metrics capture also conversions that would occur without marketing.
The numbers above are illustrative, but this is often the journey we see when moving from ad platform -based measurement to MMM.