What's the Marginal Value?

This article explains what's the Marginal Value, use cases you can apply to it, and how to read its output.

Marginal Value is the incremental (or in other words: additional) value you’ve received, as a result of the change in your spend. 

For instance, if we increased Facebook’s spend by $10,000, and received as a result 5,000 regs after we increased the spend – The marginal value of those additional $10,000 is 5,000 regs, and the marginal cost-per-reg would be 2$.

The Marginal value allows you to automatically understand the additional value you've received, as a result of any change in your spend, as detected by the platform and based on the data we receive through the existing integration.

When Comparing Marginal value to the Contribution Value, the first one tells you how much your last (or next) user cost you, and the latter - what was the overall value of the source. 

Use Cases for Marginal Values:

• Understanding the additional value gained from every channel
• Identifying cannibalization
• Diminishing returns 
• Opportunities to scale up spends