GlossaryCore Incrementality

Attribution vs Incrementality

Also known as: Measurement Paradigm War

Attribution measures correlation (User saw ad -> User bought). Incrementality measures causation (Ad caused purchase). Attribution answers 'Who touched this customer?'. Incrementality answers 'Did this marketing actually work?'. SpendSignal creates value by bridging the gap between these two views.

The Short Version

Attribution is 'Who was there?'. Incrementality is 'Who made it happen?'.

Prerequisites

The 300% Error

Retargeting often claims $10 ROAS (Attributed). But holdout tests show it only drives $1 iROAS (Incremental).

If you optimize based on Attribution, you pour money into Retargeting. If you optimize based on Incrementality, you cut Retargeting and grow the business.

How it works

1

Attribution: Sum(Revenue from Touched Users) / Spend

2

Incrementality: Lift(Test Group vs Control Group) / Spend

3

The gap identifies 'waste' (non-incremental spend)

Common Misconceptions

Using them interchangeably

Thinking Attribution is 'Real Time' and Incrementality is 'Slow' (SpendSignal makes Incrementality real-time)

Ignoring the conflict (You must choose one as your North Star)

In SpendSignal

This is the core philosophy of SpendSignal. We exist to help you move from an Attribution mindset (renting customers you already have) to an Incrementality mindset (buying new growth).

Frequently Asked Questions

QCan they match?

On pure prospecting channels (e.g., Cold Traffic Facebook), they can be close. On harvesting channels (e.g., Brand Search), they are wildly different.

QWhich one does the CFO care about?

Incrementality. The CFO cares about Net New Revenue. Attribution often reports revenue that would have happened anyway, which finance hates.

Ask about ROAS, Attribution, or Budget...