This article explains the best practice of how to build a budget allocation, based on incrementality measurements.
Our measurements will provide you the true value of your paid marketing changes - And as a result, will guide you what should you change in your spend. When orchestrated and measured for a whole market, we can divide the budget per channel or campaign more correctly, to have your marketing spend as efficient as possible. Let's see how!
First, choose a market
By market, we mean country and OS, such as India/Android. Filter the board accordingly using the filters bar.
Second, choose a timeframe
As the measurements for the change you've made recently will be relevant for the near future, we suggest to take the last 30 days or the last month or two as your test time frame.
Third, measure every channel's changes
Filter the board channel-by-channel, and measure the significant changes in costs you're seeing within the specified time frame. For example, for Facebook in this market, it'd be interesting to measure the impact of gradually decreasing this channel, and make decisions based on the results.
You can filter the board to show the channel level changes on the drop down on the left side, which will present all changes in the channel level.
What can the results tell us?
When we measured the impact of increasing Google, we identified a major gain of revenue this has caused. Meaning, if we hadn't increased Google, we could've had additional $1158 in revenue - Which means, this channel was incremental for my revenues. We'd suggest to increase the spend of this channel in this country and OS.
Fourth, export and review
By using the Table View and filters in the Results Page, you can export all relevant measurements for the budget allocation to a CSV file.
You can assemble the analysis in any structure you like. We recommend working with the following template, which includes the following:
- Channel/campaign name
- Spend delta
- Incremental conversions, revenue, and engagement
- Based on the available KPIs and your main focus
- Calculate the adj. ROAS, CPI or CPA, based on your main focus
- Cohort
- Date of change
Repeating the course of this for all channels will allow you to review who are the beneficial channels, that can be scaled, and which channels can be decreased without harming performance.
Here, we can see and compare between different changes in spend, and the incrementality of each channel, compared to your goal.
Remember that any change you apply can eventually be measured on the platform as well, to verify your change's impact upon your performance.
For any question please contact support@incrmntal.com , or open a support Ticket here