Incrementality is a metric used to evaluate the effectiveness of marketing and partnership efforts in driving desired outcomes, such as increased revenue, website traffic and overall profitability. Incrementality measures the additional growth, traffic, and revenue directly attributable to specific marketing actions, campaigns or channels. By isolating and quantifying the impact of these marketing variables, businesses can better understand the true value and return on investment (ROI) of their marketing strategies.

To accurately assess incrementality, marketers often use methodologies such as holdout tests and multivariate tests. Holdout tests involve creating a control group that is excluded from a marketing effort, allowing for a comparison against the group that does. This helps in determining the net effect of the marketing effort. Multivariate tests, on the other hand, look at the impact of multiple variables simultaneously to understand how different factors contribute to the overall outcome.

The primary goal of measuring incrementality is to prove the direct impact of marketing activities, and make sure that resources are allocated efficiently. By understanding which campaigns or channels are truly driving incremental value, businesses can make data-driven decisions to extend their marketing spend and boost performance.