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Direct Mail Marketing Incrementality

How to Use Incrementality Metrics to Inform Media Mix Decisions

6 Min Read
by Amanda Boughey

Planning a media mix can feel like steering through uncertainty. With ever-changing channels and metrics, finding what truly drives results is challenging. Incrementality metrics offer a proven, data-driven way to measure what works over time, enabling more strategic and confident decisions

While incrementality is a powerful tool, it’s not a quick fix or an all-encompassing solution. It’s a methodical, long-term approach to measuring the value of your channels. In this article, we’ll explore how incrementality metrics can shape your media mix decisions by highlighting high-performing channels, refining strategies, and guiding budget allocation.

What is Incrementality, and Why Does it Matter?

Incrementality is a framework for isolating the true impact of your marketing efforts. It helps you distinguish measurable results from external influences and baseline trends. Instead of relying on surface metrics, incrementality testing offers a clearer picture of how entire channels drive value over time. Focusing on long-term, channel-wide analysis, helps you allocate resources strategically and make data-driven decisions rooted in measurable impact—not assumptions.

At its core, incrementality is about understanding channel-level performance over time. It reveals which strategies create value and which are less impactful, helping marketers allocate resources where they’re most effective. But it’s not an instant solution — incrementality testing requires robust methodologies, such as holdout groups and control-testing frameworks, to ensure reliable results.

It takes time to achieve meaningful insights from incrementality. Its strength is identifying patterns and trends that emerge only through consistent, long-term testing. This focus on sustainability and growth over quick fixes makes incrementality a valuable tool for strategic media planning.

Let Incrementality Steer Your Media Mix Choices

Determining the best way to divide your media budget requires clarity about what works and what doesn’t. Incrementality acts as the guide that helps you connect the dots and shows where your dollars create the most impact. The insights it provides empower you to adjust your media mix with confidence, ensuring every channel drives growth and no dollar goes to waste.

Evaluating channel performance is crucial to making informed budgeting decisions. Incrementality offers a way to align your spending with what’s actually driving results — on a channel level — so you can refine your media mix over time. It helps you identify the true drivers of growth and focuses on sustainable outcomes, not short-term wins. 

Diversify for Long-Term Success

Over-investing in one channel might work for a while, but it’s a risky move.  Channels can hit diminishing returns quickly, and what worked yesterday might not perform tomorrow. Incrementality metrics help you recognize when a channel’s impact is starting to plateau and when it’s time to explore other opportunities.

For example, high engagement metrics like click-through rates might make a campaign look successful, but low incremental lift reveals that it isn’t driving meaningful new results. Diversifying your spend across multiple channels based on incrementality insights reduces these risks and keeps your strategy resilient. Ultimately, exploring untapped channels or scaling campaigns in overlooked spaces produces a balanced approach that makes your budget work smarter, not harder. 

How to Apply Incrementality Across Channels Effectively

Making incrementality work across all your channels isn’t a quick fix — it requires a methodical approach. Good intentions are not enough, you need to set up robust systems to measure lift accurately. Start by building holdout groups for each channel, which act as controls to show what happens when audiences aren’t exposed to your campaigns. This helps you measure true incremental lift.

Next, align attribution windows to account for the unique timelines of different channels. For example, direct mail often leads to delayed conversions compared to digital ads. Without standardized attribution, you risk misinterpreting results. Incrementality testing depends on this careful framework to reveal which channels are driving meaningful results and where adjustments might be needed.

Measuring Apples to Apples Across Platforms

Evaluating performance across platforms often feels like navigating a maze of mismatched metrics and attribution models. Each channel operates differently, making it challenging to compare them on equal terms. Incrementality testing simplifies this by focusing on lift—a clear measure of how much each channel contributes to your overall results over time.

With lift as your metric, you can fairly evaluate campaigns across channels. For instance, a digital campaign with high ROAS might have a low incremental lift because it mostly reaches customers who would have converted anyway. In contrast, direct mail might generate unexpected growth by tapping into new audience segments that have never purchased before.

You can use control groups, or holdout groups, to compare behavior between exposed and unexposed audiences, which provides the foundation for accurate lift measurements. Universal holdouts help validate your findings, making them statistically reliable and reflective of long-term marketing impact.

Additionally, you can adjust attribution windows to account for differences in how long it takes each channel to deliver results. For instance, direct mail often requires more time to show its true impact compared to faster-moving digital campaigns. By tailoring attribution windows, you ensure each channel is fairly evaluated based on its unique timeline for driving outcomes.

Achieving Sustainable Growth with Incrementality Metrics

Your budget isn’t just about how much you spend — it’s about how strategically you allocate it. Incrementality metrics help you spot when a channel hits diminishing returns, signaling it’s time to reallocate resources. For example, direct mail might deliver impressive lift up to a certain point, but reallocating some of that spend to a digital campaign could result in an even stronger overall return.

To find the sweet spot, consider these steps:

  • Analyze historical performance: Identify where each channel’s performance begins to plateau and use this insight to adjust your spending.
  • Test new channels: Experiment with small allocation increases to see if they unlock new opportunities for growth.
  • Refine audience targeting: Try reaching different segments to improve performance and maximize impact.
  • Reassess regularly: Since incrementality is an ongoing process, you’ll need to use new data to continually fine-tune your strategy. 

Finding the sweet spot isn’t a one-time task — it’s an ongoing process of adjusting and optimizing as new data comes in. By continuously evaluating performance and reallocating resources where they’ll have the greatest impact, you ensure your strategy evolves alongside your goals.

Improve Your Media Mix Decisions with Postie’s Incrementality Tools

Postie simplifies the complex process of incrementality testing, giving you the tools to measure lift accurately across channels and fine-tune attribution models. We establish robust methodologies such as control groups and automated tracking so you can make data-backed decisions with confidence. The actionable insights you gain go beyond surface metrics, enabling you to optimize your media mix, scale the campaigns that drive growth, and find hidden opportunities in channels you haven’t tapped into yet.

Schedule a demo today to see how Postie’s tools can transform your approach to media mix optimization with actionable, data-backed insights.

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