Measuring Advertising Return (iROAS) Through Incrementality Testing

An incremental test measures the real impact of an advertising campaign by comparing a treatment group (where advertising is active) to a control group (where it is inactive). This allows for identifying the effect of campaigns on conversions and precisely evaluating their incremental return on advertising spend (iROAS).

In a legal and technological context where analytics measurement methods are increasingly being called into question, incremental testing becomes particularly relevant to help you make better decisions about your advertising investments.

Both Meta and Google Ads media platforms offer a Conversion Lift feature that facilitates the implementation of incremental tests. User-based or geographic tests can be conducted in both cases. On Meta, this feature requires a minimum spend and conversion volume to be unlocked. On Google, the feature is still in Beta and only available upon request through your Success Account Manager.

If you are unable to use these features or if they do not allow you to reach your objectives, geographic incremental testing can be performed "manually" through precise campaign management. We then use approaches tailored to your needs, such as the TDR model (temporal regression) and Causal Impact.

In both cases, implementing incremental tests is not just about pressing a button, launching and stopping a campaign. Incremental tests require a rigorous design phase to exploit their full potential.

When using Meta or Google Ads' Conversion Lift features, test and control groups are automatically selected. The first group receives the ads while the other is exposed to "ghost" ads, allowing measurement of additional conversions generated by your campaigns on the exposed group.

For geographic tests, we define test and control zones based on their comparability across criteria such as historical sales and investments, thus ensuring that the results reflect the true impact of advertising.

Incremental testing requires rigorous methodology and advanced statistical analysis. EdgeAngel supports you at every step of the process, ensuring reliable results and providing clear insights to optimize the profitability of your advertising investments.

iROAS (Incremental Return on Ad Spend) quantifies the additional return on investment of your advertising, providing a key indicator to evaluate the profitability of your investments, without bias.