E-commerce Glossary

Incremental Revenue

Additional revenue directly attributable to a specific marketing action.

Incremental revenue measures the additional sales generated by a marketing campaign compared to what would have occurred without it. It is the purest measure of marketing effectiveness.

The challenge: it is difficult to measure what did not happen. Common methods include geographic A/B tests, holdout groups, and causal analyses.

Example: you launch a Meta Ads campaign and your sales go from 100 to 130 orders/day. But seasonality may explain 15 extra orders. The real incremental revenue from the campaign is therefore 15 orders, not 30.

Fullmetrix helps evaluate incrementality by comparing performance by period and by channel, although a true incrementality test requires a dedicated experimental methodology.

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