How to use incrementality metrics (iROAS) to guide your actions

Modified on Fri, 22 Aug at 2:53 AM

How can users use these metrics in their day-to-day work?

Reporting & Performance tracking All incrementality metrics are now available in Campaign Management and Reporting sections for Sponsored Product (SP) keywords and campaigns for Amazon.

Account managers and advertising owners, can start tracking these metrics:

Incremental RoAS - This is a measure of the quantum of incremental sales being generated per $ spent in advertising.
Incremental Fraction - This is a measure of advertising efficiency.

Ideally, both these numbers should be trending up or at least stay flat over time.

Further, once we start optimizing based on incrementality, the sales metrics that we track should also become total sales (organic+ad-driven).

Manual Optimizations Users can now use these new metrics to automate bid changes via campaign optimizer to increase the incrementality of their keywords and campaigns.

Users can also filter out campaigns manually and make bulk changes to budgets and bids if they wish.

Automated Optimizations Eventually, we envision these metrics to be utilized in budget optimizer to drive automated bid and budget changes to increase incremental sales. This is currently under development and we will start recruiting pilot accounts to test this change in budget optimizer.

For what type of Ads are these metrics available and for which retailers?

Currently, these metrics are available for SP and SB campaigns (auto targeting and manual keyword targeting) for all major retailers like Amazon & Walmart.

Won’t branded keywords inherently have lower incrementality compared to generic keywords, implying the need to reduce investment in them?

The current model of incrementality estimate does not incorporate long term incrementality effects, which would be essential to make a fair comparison between different types of keywords. Hence, for now, the incrementality values are suggested to be used for making comparisons within keywords/campaigns only of the same type.