Incrementality isn't always black and white, but Amazon has definitely made it easier to attribute. Incrementality defines any sort of activity that drives a sale that you would not have normally gotten. Simply put, if we're going to not spend the dollar on advertising, are we going to get that sale? Yes or no? But often times that yes or no is really more of a maybe. For instance, you might still be getting a sale without advertising today, but without investing in ads, your organic rank might suffer, meaning that you won't be getting that sale without ads tomorrow. It's also really hard to attribute incremental revenue because there are so many touchpoints that could lead to a sale. Now that Amazon has embraced the upper-funnel via Prime Video ads and other forms of upper-funnel advertising, consumers are getting exposed to more Amazon products than ever. Consumers might see a video ad 10+ times and then then take a non-linear path to conversion, getting exposed to several other ad formats along the way. Thankfully, with AMC and DSP, brands can better model conversions to decipher last-touch attribution and really map the path to purchase. In the end, the black and white of incrementality is more of a gray. But we're getting better at being able to understand that specific hue over time. #AMC #Incrementality #Ecommerce
Dan Brownsher Agree with you 💯 I think what's interesting is that even if we can't always pinpoint exactly what drove a sale, we can still use data to make informed decisions about our advertising strategies....
The "maybe" factor in incrementality is why A/B testing is so important. It helps isolate the impact of specific campaigns.
CLV is another important metric to consider when evaluating incrementality. A single sale driven by advertising might not be the whole picture.
AMC and DSP are powerful tools, but data privacy regulations make it even more crucial to utilize them responsibly.
Great breakdown of the complexities of attribution, especially with Amazon's upper-funnel advertising.
It’s getting easier to see the real impact of our ads beyond the simple click, mapping out the customer's journey in a much more detailed way.