How To Measure Incremental Lift
How to measure incremental lift: the formula, a regional holdout you can run on your own sales data, and how to read the result without over-trusting it.
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By Joris van Huët, Founder & CEOUpdated 3 min read
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Introduction
Incremental lift is the extra conversions a marketing activity causes, measured against a matched group that didn't get it: for illustration, if regions where your Meta ads kept running made 1,150 orders in two weeks and matched regions with the ads paused made 1,000, the lift is 15%. As a formula, lift = (conversions with the activity − conversions without) ÷ conversions without. In that example, 150 of the 1,150 orders were incremental; the rest would have happened anyway.
Why Measure Incremental Lift?
Attribution models share out credit by last-click or linear rules, whether or not a channel caused the sale. Lift asks what would have happened without the channel. It tells you:
- which channels cause sales, not just which ones show up before them;
- where spend is buying sales you'd have had anyway;
- which channels deserve more budget and which can take a cut.
The Causal Approach
You can't watch the same buyers with and without a channel at the same time, so a holdout stands in for the missing half: regions (or people) kept away from the channel, chosen to track the rest closely. The gap in conversions between the two is the channel's causal effect.
Steps to Measure Incremental Lift
Five steps for a regional holdout on your own sales data:
- Pick one channel and one outcome, such as Meta prospecting and orders by region from your Shopify store.
- Split regions into test and holdout. Choose regions whose orders moved together over the past few months, with enough orders in each to see a change.
- Pause or cut the channel in the holdout regions for at least two weeks, longer if your customers take weeks to decide. Keep prices, promotions and other channels the same everywhere.
- Compare against the weeks before. If the test regions normally make 1.15 times the holdout's orders and made 1.32 times as many during the test, the channel lifted orders by about 15% (1.32 ÷ 1.15 = 1.148).
- Check it isn't noise. If that ratio wobbled as much from week to week before the test, the result is inconclusive, not zero. That's a rough statistical significance check; a formal test does the same with more rigour.
Interpreting Results
A lift that clearly beats the normal wobble means the channel adds sales you wouldn't otherwise have had. A lift near zero means it mostly collects credit for sales that would have happened anyway. A negative result deserves a re-run before anyone acts on it: check that the regions were well matched and nothing else changed.
Practical Use
Move budget in steps toward channels whose lift holds up, and re-test after big changes in spend, creative or season, because lift isn't fixed. For how lift fits with marketing attribution, see the guide to incrementality testing.
Conclusion
Rule of thumb: budget on lift, not on reported ROAS, because every platform grades its own homework, and read every lift against the weeks before the test.
Related Resources
Incrementality Testing: The Only Way to Know If Your Ads Actually Work
How to Run a Holdout Test on Meta Ads Without Killing Your Revenue
Frequently asked questions
What is the difference between incremental lift and attribution?
Lift measures what a channel caused, against a holdout that didn't get it; attribution shares out the credit for sales among the channels that came before them, whether or not they caused anything. Attribution is always there and always correlational. Lift takes a test, and answers the causal question.Can incremental lift be negative?
Yes, in principle: it would mean the channel cost you sales, for example by pulling buyers away from a channel that converts them better. Before acting on a negative result, check that the regions were well matched and nothing else changed, and re-run the test.How does Bayesian inference improve lift measurement?
It turns a lift estimate into a range of plausible values instead of a single number, and lets you bring in what you already know, such as earlier tests, as a prior. It doesn't fix a badly matched holdout: the design of the test matters more than the statistics on top.Is a control group required?
For a measured answer, yes. Without a control group you're comparing against a guess of what would have happened. Models can estimate that counterfactual from history, but a holdout gives you a measured one.How often should I measure incremental lift?
After any big change in spend, creative or season, and at least once a year for your largest channels, because lift changes as budgets grow.
Go deeper: Causal attribution, explained.
Sixty-second versions of these ideas: Causality Engine on YouTube Shorts.
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Terms in this article
- AttributionAttribution identifies user actions that contribute to a desired outcome and assigns value to each. It reveals which marketing touchpoints drive conversions.
- ConversionConversion is a specific, desired action a user takes in response to a marketing message, such as a purchase or a sign-up.
- Holdout TestA holdout test is an experiment that keeps a random part of an audience from seeing a campaign and compares its results with those of the part that could see it. The held-out part is the control group, so the gap in outcomes estimates what the campaign added.
- IncrementalityIncrementality is the part of an outcome, such as orders or revenue, that a marketing activity caused: the extra results compared with what would have happened without it. It is a causal effect, not the number of conversions credited to a channel.
- Incrementality TestingIncrementality Testing measures the additional impact of a marketing campaign. It compares exposed and control groups to determine causal effect.
- Marketing AttributionMarketing attribution assigns credit to marketing touchpoints that contribute to a conversion or sale. Causal inference enhances attribution models by identifying true cause-effect relationships.
- RevenueRevenue is the total income generated by the sale of goods or services related to a company's primary operations.
- Statistical SignificanceStatistical Significance measures the probability that observed results are not due to random chance. It confirms the reliability of test outcomes.