How to Prove the Viability of Your Marketing Program

As a marketing leader, demonstrating the viability of your marketing program is essential. It not only justifies the budget and resources allocated but also builds confidence among stakeholders by showing tangible results. Two advanced tactics that can help achieve this are Incrementality Testing and Causal Impact Analysis. Stella offers both of these tools, providing you with powerful methods to measure and optimize your marketing strategies.

Incrementality Testing: Measuring True Impact

What is Incrementality Testing?

Incrementality testing is a method used to determine the true value of a marketing effort by isolating its effects from other factors that might influence the outcome. This approach helps in understanding whether a particular marketing activity, such as a paid media campaign, is driving additional conversions or if those conversions would have happened anyway. By setting up controlled experiments, marketers can accurately measure the incremental impact of their campaigns.

Example with Digital Out of Home Advertising

Imagine you are implementing a digital out-of-home advertising campaign in several large cities. To measure the incrementality, you can create two groups: cities exposed to the ads (test group) and comparable cities that are not (control group). By comparing the performance metrics such as sales or traffic between these two groups, you can determine if the campaign is truly driving additional results or if those metrics would have occurred without the ads.

Stella's Incrementality Tool

Stella offers an incrementality testing tool that is the most cost-effective on the market. This tool allows you to easily set up and run your experiments, providing clear insights into the incremental impact of your marketing activities. By leveraging Stella’s tool, you can make data-driven decisions that maximize your marketing ROI, ensuring that every marketing dollar is well spent.

Causal Impact Analysis: Uncovering True Relationships

What is Causal Impact Analysis?

Causal Impact Analysis is a statistical method used to estimate the effect of an intervention on an outcome over time. This method is particularly useful for understanding the impact of changes in marketing strategies, such as launching a new ad campaign or adjusting pricing. It accounts for external factors that might influence the outcome, providing a clearer picture of the intervention's effectiveness.

Example with TikTok Ads

Consider a scenario where you activated TikTok ads two months ago and want to determine their true impact on sales. Using causal impact analysis, you can compare the actual sales outcomes to a synthetic control group that represents what would have happened without the TikTok ads. This method allows you to isolate the effect of the TikTok ads and see if they significantly boosted sales or if the sales would have occurred regardless of the ads.

Stella's Free Causal Impact Tool

Stella provides a free causal impact analysis tool that is easy to use and highly effective. Simply input your data into the Google Sheets template provided by Stella, specify the intervention period, and run the analysis. Stella will then calculate the statistical significance of your marketing intervention, showing whether it had a positive or negative impact. This tool empowers you to make informed decisions and prove the value of your marketing strategies with confidence.

Incrementality Testing vs. Causal Impact Analysis

Forward-Looking with Incrementality Testing

Incrementality tests are designed to measure the impact of marketing initiatives moving forward. They require setting up experiments and observing the results in real-time. This method is excellent for planning future campaigns and ensuring that each new initiative is contributing positively to your overall marketing goals.

Historical Analysis with Causal Impact

On the other hand, causal impact analysis allows you to look at historical data to understand the impact of past marketing initiatives. This method can reveal whether previous campaigns were effective and help refine future strategies based on these insights. By combining both techniques, you can continuously optimize your marketing efforts and demonstrate their viability to stakeholders.

Conclusion

Proving the viability of your marketing program is crucial for demonstrating its value and optimizing your strategies. Incrementality testing and causal impact analysis provide clear, actionable insights into the effectiveness of your marketing efforts. Stella offers powerful tools for both methods, allowing you to measure and maximize the impact of your marketing activities. By leveraging these tools, you can confidently steer your marketing strategy in the right direction and achieve significant incremental gains for your business.