Metrics
5 minute read

What Is Incrementality In Marketing And Why It Matters

Written by

Matt Pattoli

Founder at Cometly

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Published on
November 1, 2025
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Here’s a simple way to think about it: marketing incrementality measures the true, causal impact of an ad or a campaign. It answers the one question that keeps marketers up at night: "Did this ad actually cause a new sale, or did it just get credit for a sale that was going to happen anyway?"

It’s the difference between scoring the winning goal and just happening to be on the field when someone else scores.

Defining The True Value Of Your Marketing

A group of marketers analyzing data on a large screen, representing the concept of incrementality in marketing

Let's say you own a popular local coffee shop. You decide to run a social media ad campaign offering a 10% discount. The results look great—you see a huge spike in sales that day.

But here’s the million-dollar question: How many of those customers were regulars who would have come in anyway, versus brand-new customers who only walked through the door because they saw your ad?

That's the entire concept of incrementality in a nutshell. It’s all about separating correlation (two things happening at the same time) from causation (one thing making another happen).

Traditional metrics like Return on Ad Spend (ROAS) might give your ad credit for all those sales. But incrementality forces you to be more honest and isolate only the additional business the ad generated.

Why This Distinction Matters

Without measuring incrementality, you risk pouring money into campaigns that feel productive but aren't actually growing your business.

Think about a branded search ad. It might have a phenomenal ROAS on paper, but if it’s only capturing people who were already typing your brand name into Google, its incremental impact is likely close to zero. You're basically paying to get in front of people who were already looking for you.

When a promotion generates $1 million in sales, incrementality analysis is what tells you whether that money represents new demand or just business you would have gotten anyway. It reveals the true, causal lift.

The Core Idea: Incrementality is about proving cause and effect. It moves you beyond asking, "What happened?" to asking, "What happened because of what we did?"

Incrementality At A Glance

To make this crystal clear, here’s a quick breakdown of what makes incrementality such a critical metric for any serious marketer.

Core ConceptWhat It AnswersPrimary GoalIncrementalityDid my ad cause a new sale that wouldn't have happened otherwise?To measure the true causal lift and prove the real value of marketing spend.AttributionWhich touchpoint gets credit for a sale that already occurred?To assign credit across various marketing channels based on a set model.

By focusing on the incremental lift in conversion rate, marketers can finally make smarter budget decisions. You can confidently cut the channels that aren't pulling their weight and scale the ones that genuinely drive growth. This mindset shift is the key to unlocking real marketing efficiency.

Moving From Attribution To True Impact

For years, marketers have leaned on attribution models to figure out what’s working. Think of these models like referees in a soccer game—they’re quick to give credit to the player who scored the goal. But what about the brilliant pass from midfield that made the goal possible? Standard attribution often misses that crucial assist.

This is exactly why smart marketers are shifting their focus from attribution to incrementality. Before you can measure true impact, it’s worth understanding the fundamentals of marketing attribution and the common models. In short, attribution tells you which channels were part of the customer's journey, but it can't prove whether those channels actually caused the sale.

Incrementality, on the other hand, is like a coach reviewing the game tape. It looks past the final touch to pinpoint the specific play—the specific ad—that made the goal happen in the first place.

The Problem With Surface-Level Credit

Most attribution models just don't tell the whole story. They tend to reward channels that are great at targeting people who were already going to buy anyway, which leads to wasted ad spend and missed opportunities for real growth.

Here are a couple of common attribution traps:

  • Overvaluing Retargeting Ads: A customer adds an item to their cart, gets distracted, then comes back to buy after seeing a retargeting ad. Last-click attribution gives 100% of the credit to that ad, completely ignoring the fact that the customer was already deep in the funnel.
  • Misinterpreting Branded Search: Ads targeting your own brand name almost always look like they have an amazing ROAS. The catch? Most of those clicks come from people who were already looking for you. The ad didn't create new demand; it just harvested it.

These scenarios highlight the classic mistake of confusing correlation with causation. You can dive deeper into these issues in our guide on the biggest attribution challenges in marketing analytics. Without an incrementality mindset, you’re just paying to take credit for sales you likely would have gotten anyway.

Proving Causal Impact With Control Groups

So, how does incrementality prove a campaign actually worked? Through simple, controlled experiments. You show your ads to a "test group" and hold them back from a similar "control group." The difference in their behavior is your true impact.

For example, let's say the test group (who saw your ads) made 1,250 purchases. During that same time, the control group (who didn't see them) made 1,000 purchases. The incremental lift from your campaign is those extra 250 sales. That 25% lift is the real, causal impact of your marketing.

This experimental approach is the only way to definitively know if your marketing efforts are creating new customers or just taking credit for organic behavior. It’s the difference between guessing and knowing.

By shifting your focus from who gets credit to what causes growth, you can start making much smarter decisions. This frees you up to move your budget away from low-impact activities and double down on the campaigns that are truly moving the needle for your business.

How To Actually Measure Causal Lift

Alright, so you’re sold on the idea of incrementality. That’s the easy part. The real challenge is actually measuring it—proving that your marketing efforts are the true cause of a lift in sales, not just a passenger on a journey that was already happening.

To do this, you have to shift from passive observation to active experimentation. It’s all about running controlled tests to isolate the impact of your campaigns. Forget gut feelings; we're talking about real, measurable proof.

The gold standard for this involves splitting your audience into two groups. The first is your test group, the people who see your brilliant new campaign. The second is the control group—a statistically identical slice of your audience that you intentionally hide the campaign from. The difference in their behavior? That’s your incremental lift.

Core Incrementality Measurement Methods

There are a few solid ways to set up these experiments, and the one you pick depends on your campaign, audience size, and what you’re trying to measure. This is where mastering data analysis for marketing success becomes a marketer's superpower.

Here are the three most common techniques you’ll see in the wild:

  • A/B Testing (Split Testing): This is the classic method, perfect for testing one specific thing, like an email or a landing page. For example, you might send a promotional email to 90% of your list (the test group) and nothing at all to the other 10% (the control group). The sales from that 10% give you a baseline of what would have happened anyway.
  • Control Group Holdouts: This is the go-to method for paid ads. You simply tell the ad platform to hold back a small slice of your target audience—say, 5-10%—and prevent them from ever seeing your ads. By comparing the conversion rate of the people who saw the ads to those who didn't, you get a clean measurement of the lift your ads generated.
  • Geo-Lift Studies (Matched Markets): This one’s best for channels that are notoriously hard to track at an individual level, like TV, radio, or billboard campaigns. You find two or more geographic areas that are demographically similar, run your ads in the "test" markets, and keep the "control" markets dark. The difference in sales between the regions tells you if your big-budget campaign is actually working.

This infographic really nails the shift in mindset from just crediting touchpoints to proving genuine impact.

Infographic about what is incrementality in marketing

It’s about moving from observation (the magnifying glass) to validation (the trophy).

To help you decide which approach to use, here’s a quick breakdown of the most common methods for measuring incrementality.

Comparing Incrementality Measurement Methods

This table compares the three core methods, outlining how they work, what they're best suited for, and how complex they are to set up.

Method How It Works Best For Complexity
A/B Testing Expose a test group to a campaign variation and a control group to another (or nothing). Email marketing, landing pages, single-asset tests. Low
Control Group Holdouts Intentionally withhold ads from a small, random percentage of your target audience. Digital ad campaigns (social, search, display). Medium
Geo-Lift Studies Run campaigns in designated “test” geographic markets and compare results to “control” markets. Offline channels (TV, radio) or brand awareness campaigns. High


Choosing the right method ensures your results are not only accurate but also relevant to the channel you're testing.

Putting Control Groups Into Practice

So, how does a control holdout work in the real world? Let’s imagine you’re launching a new social media campaign.

You define your audience just like you always do. But before you hit "publish," you tell the platform to randomly carve out 10% of that audience and stick them in a control group. These folks will never see your ads.

Then, you let the campaign run long enough to gather meaningful data. Afterward, you compare the two groups.

Example: Your test group (the 90% who saw your ads) converted at 4.5%. Your control group (the 10% who didn't see ads) had a natural, baseline conversion rate of 3.0%. The incremental lift directly caused by your ads is 1.5%.

Boom. This simple experiment proves your campaign generated a 50% relative lift in conversions.

Running these tests consistently can feel like a lot of work, but using an accelerated testing strategy helps you get these kinds of insights much faster. With this data, you can finally calculate true incremental metrics like iROAS (Incremental Return on Ad Spend) and confidently scale the campaigns that are actually growing your business.

Thriving In A Privacy-First Advertising World

The ground is shifting beneath every marketer's feet. With third-party cookies crumbling and privacy regulations like GDPR and CCPA becoming the new normal, the old playbook for tracking users is officially broken. This isn't just a temporary disruption—it's the new reality of advertising.

For years, we all relied on following individual users across the web to figure out what was working. But in a privacy-first world, that model is no longer sustainable. So, the big question is: How do you prove your value when you can’t connect every single click and conversion back to a specific person?

This is exactly why understanding what is incrementality in marketing is no longer a "nice-to-have." It's a massive competitive advantage. It gives you a powerful, privacy-friendly way to measure what actually works.

The Shift To Aggregate Measurement

Here’s the beauty of incrementality: it doesn’t need to know who an individual is. Instead of tracking people, it measures the behavior of groups. You simply compare a test group (people who saw your ads) with a control group (people who didn't) and measure the difference in their actions.

This approach is inherently privacy-safe because it relies on high-level, aggregate data, not personal identifiers. It answers the most important business question—"Did my ads actually cause more sales?"—without ever creeping on an individual's privacy. This is a huge reason why the entire industry is moving from attribution to incrementality.

Incrementality is not just an alternative to attribution; it’s a necessary evolution for responsible and effective marketing in the modern era. It respects user privacy while still delivering the causal insights needed to drive business growth.

As third-party cookies and mobile identifiers disappear, a privacy-forward model that measures causal lift at a group level is the only way to operate effectively. This means marketers need to get comfortable with new metrics like Incremental Return on Ad Spend (iROAS) and incremental Cost Per Acquisition (iCPA) to optimize their budgets with confidence. You can discover more insights about incrementality measurement on skai.io to see how this transition is taking shape across the industry.

Adapting Your Strategy For The New Era

To win in this new environment, you need a measurement strategy that respects user consent while still proving your impact. That means leaning into methods that don’t depend on tracking every last individual.

Here are a few ways to adapt right now:

  • Embrace Control Groups: Start making holdout tests a standard part of your campaign planning, especially for your biggest channels. It’s the cleanest way to see your true impact.
  • Focus on First-Party Data: Building direct relationships with your customers is more important than ever. Strengthening your use of first-party data gives you a consented, privacy-compliant way to understand your audience.
  • Utilize Geo-Lift Studies: For broader campaigns like TV or radio where individual tracking is impossible, geo-based tests provide clear, aggregate insights without ever touching personal data.

By adopting an incrementality mindset, you're not just complying with new rules; you're building a more resilient and trustworthy marketing function. You can confidently prove your worth to stakeholders with clear, causal data—all while respecting your customers' privacy. This is the future of performance measurement.

Seeing Incrementality Work In The Real World

A marketer pointing at a graph on a screen showing a significant upward trend, illustrating successful incrementality measurement.

Theory and measurement methods are one thing, but the true power of an incrementality mindset really clicks when you see it in action. Moving beyond spreadsheets and into real business scenarios shows just how game-changing this approach can be. Let's dig into a few examples of how smart companies are using incrementality to make better decisions and drive actual growth.

These aren't just hypotheticals—they represent the kind of wins marketers are getting every day when they shift their focus from correlation to true causation.

The E-commerce Brand And The Video Campaign

An online apparel store went all-in on a new, high-production video ad campaign across its main social media channels. The initial attribution reports looked amazing, boasting a high ROAS and thousands of conversions. But the marketing team was sharp—they wanted to know if these expensive videos were actually bringing in new customers or just getting clicks from people who would have bought anyway.

To get a real answer, they ran a control group holdout test. A small, random segment of their target audience was intentionally kept from seeing the video campaign.

The results after a month were eye-opening:

  • The group that saw the video ads converted at a rate of 5.2%.
  • The control group, who never saw the ads, had a baseline conversion rate of 4.0%.

The campaign was responsible for a 1.2% incremental lift, which translated to a 30% relative jump in sales. This data proved the video campaign was a genuine success, justifying the higher production cost and giving the team the confidence to scale the budget.

The Mobile App Proving Its Value

A popular mobile gaming app was pouring money into paid search ads, targeting keywords directly related to its game. Of course, the last-click attribution model was crediting these ads with a massive number of app installs. But a savvy analyst asked the million-dollar question: "How many of these users would have searched for our brand and installed the app regardless?"

They decided to find out by pausing all their branded search ads for two weeks. During this "blackout" period, they kept a close eye on their total installs. What they found was that new installs barely dipped.

The experiment revealed that over 80% of the installs previously credited to paid search were from users who were going to download the app organically anyway. The ads were mostly capturing existing intent, not creating it.

This insight allowed them to slash their branded search budget and redirect that money to top-of-funnel awareness campaigns designed to attract genuinely new players. Many businesses have similar stories of discovery, which you can see by digging into various marketing case studies.

The Retail Chain Validating TV Spend

A national retail chain invested millions in a regional TV advertising blitz to drive more foot traffic to its stores in key metro areas. Measuring the direct impact of TV ads is notoriously tricky, so they turned to a geo-lift study to get a clear answer.

They chose two similar cities: one would be the test market where the TV ads ran, and the other would be the control where life went on as usual. By tracking sales data in both locations before, during, and after the campaign, they could isolate the true impact of the commercials.

The test market showed a 15% incremental lift in foot traffic and a 12% increase in in-store sales compared to the control city. This was the concrete proof they needed to show the executive team that their traditional media spend was delivering a strong, measurable return.

Your Incrementality Questions Answered

Even when you’ve got the basics down, actually putting incrementality into practice brings up a ton of questions. It's a big shift from the attribution models most of us are used to, so it's natural to wonder how it all works in the real world.

This section is your go-to FAQ. We'll tackle the most common questions marketers have, with clear, straightforward answers to help you feel confident in this measurement approach.

How Is Incrementality Different From Lift?

This is a super common point of confusion, but the difference is actually pretty simple. Incrementality is the method, and lift is the result.

Think of it like a science experiment. The process you follow—setting up a test group and a control group to find a causal link—is your incrementality test. The measurable outcome you find, like a 15% boost in sales from the group that saw your ad, is the incremental lift.

In other words, you use incrementality testing to measure the causal lift your campaign actually generated. Incrementality is the "how" and "why" that proves the "what" (the lift itself).

Can Small Businesses Use Incrementality Testing?

Absolutely. You don't need a massive corporation's budget to do this. While big brands might run complex geo-lift studies, the core idea is accessible to anyone. The main thing you need isn't a huge budget; it's enough data to get a statistically significant result.

A small e-commerce brand can easily run an incrementality test on its next email campaign. Here’s a simple way to pull it off:

  1. Create a control group: Hold back your promotional email from 10% of your subscriber list. This is your "do nothing" group.
  2. Send the campaign: The other 90% of your subscribers get the email as planned.
  3. Compare the results: A few days later, compare the purchase rate of the group that got the email to the group that didn't.

That difference in purchase rates? That's the true incremental impact of your email. It’s a simple, powerful way to prove value without needing a whole data science team.

What Are The Biggest Challenges In Measuring Incrementality?

While it's a powerful tool, measuring incrementality isn’t always a walk in the park. Here are the most common hurdles marketers run into:

  • Statistical Significance: This is a big one. If your test and control groups are too small, your results could just be random noise. You need enough volume to actually trust the outcome.
  • Data Contamination: The biggest struggle is keeping your control group "clean." It's tough to completely prevent people in that group from seeing your campaign somewhere else, like on another device or a different channel, which can skew the results.
  • Cost and Complexity: The more advanced methods often require specialized tools, deep expertise, and a bigger budget to run properly. This can definitely be a barrier for some teams.
  • Organizational Buy-in: Honestly, this might be the biggest challenge of all. It requires shifting your whole team's mindset away from comfortable, familiar attribution metrics. You have to get everyone on board with a more rigorous, experimental way of thinking about measurement.

Does Incrementality Replace Attribution Completely?

Not necessarily. In fact, they can work together as powerful partners, they just serve different purposes.

Think of incrementality as your gold standard for making the big-picture budget decisions. Because it measures true causation, it’s the best way to answer questions like, "Should we pour more money into this channel next quarter?"

Attribution models, on the other hand, are still useful for directional insights and day-to-day optimizations. They help you answer smaller questions like, "Which ad creative is getting the most clicks?" or "What's the most common path users take before converting?"

Many of the smartest marketing teams use periodic incrementality experiments to calibrate and validate their attribution models. This creates a much smarter, more accurate hybrid system for measurement.

Ready to move beyond guesswork and measure the true impact of your marketing? Cometly provides the tools you need to track your entire customer journey, attribute revenue with precision, and unlock the insights that drive real growth. See how it works at https://www.cometly.com.

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