Knowledge Base

Incrementality Testing

Incrementality tests are a mathematical approach to evaluating ad spend and determining if an ad campaign caused people to convert. Running an incrementality test with LiveIntent lets you measure the incremental conversions driven by your marketing efforts across the LiveIntent exchange. 

Before getting started, you will need to agree to the following:

  1. Run a campaign that will last for at least 4 weeks (depending on scale) to accumulate enough learnings for campaign optimization. 
  2. The campaign must meet the conversion count threshold - at least an average of 20 conversions per day. 
  3. Set up the LiveConnect tag on your website to track conversions and pass back user IDs, ideally MD5 email hashes, with each conversion event.
  4. Run the incrementality test over a minimum of 2 weeks and share all website conversion data for those two weeks.
  5. All other active line items must be paused so as not to interfere with the incrementality test.

Incrementality Test Process

  1. The incrementality test will randomly split out 90% of the active email readers in the LiveIntent exchange to use for targeting (the test group) and show PSA ads to the remaining 10% of inventory (the control group). 
  2. Both Line Items (test and control) will optimize to the same conversion pixel and use the same targeting parameters (if applicable) to ensure we are optimizing ad spend on both lines to the relevant audience for your campaign.
  3. The test runs the length of the agreed-upon timeframe (2-week minimum). We will pull conversions reports approximately 24 hours after the end of the test period to accumulate all relevant conversions within 1 day of the campaign ending.
  4. The LiveIntent team cross-references log-level impression data with the LiveConnect-tracked conversions attributed to the exposed and control groups. Comparing the conversion rates between the different groups allows us to determine the incremental conversions driven by your campaign. 

Your LiveIntent Optimizations team will analyze the incremental conversions to determine the “incremental eCPA” and recommend any necessary adjustments to your standard CPA goal to better optimize your campaigns moving forward.

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