How do you calculate incremental sales driven by a media tactic?
The impact of a marketing tactic (eg: Facebook Prospecting, Retargeting, Catalog for Housefile, Direct Mail, National TV) is typically measured in terms of incremental sales driven by that tactic.
Incremental sales driven by a media tactic is calculated using advanced marketing measurement techniques. There are 3 major types of advanced marketing measurement techniques.
- Design of Experiments (DoE)
- Marketing Mix Modeling (MMM)
- Multi-Touch Attribution (MTA)
Once incremental sales is calculated for a tactic using one of the above techniques, the ROI for that tactic is calculated using the following formula.