S3 E9: Measuring Top Of Funnel and Incrementality Testing with Zach Epstein from Haus
Jul 9, 2023
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Zach Epstein, Founder and CEO of Haus, discusses top-of-funnel measurement and incrementality testing in marketing. They explore methodologies and tools for accurate measurement, the benefits of using PostScript as an SMS platform, and the efficiency of advertising channels on meta platforms like TikTok and YouTube. They also highlight the importance of data and customer exclusions for effective targeting and the significance of testing and incrementality in marketing strategies.
Incrementality testing helps companies validate the impact of their advertising and make informed decisions about their advertising budgets and target channels for growth.
Measuring cross-network impact and dealing with attribution complexities is a challenge that can be addressed through reliable measurement methodologies and tools like Haus, which provide a holistic view of marketing efforts across different networks.
Incrementality testing allows companies to identify which channels and strategies drive incremental success, enabling them to optimize and calibrate their marketing spend based on real business impact.
Deep dives
Incrementality Testing and Validating Advertising Impact
One of the main ideas discussed in the podcast is the importance of conducting incrementality testing and validating the impact of advertising. The guest, Zach Epstein, founder of House, explains that companies spending significant amounts of money on platforms like Google need to go beyond standard attribution and reporting. They should develop their own systems to validate the effectiveness of their advertising. By running experiments, comparing the outcomes of serving ads versus not serving ads, companies can determine whether their ads are truly driving incremental results or if customers would have made purchases anyway. The podcast highlights that understanding incrementality helps companies make more informed decisions about their advertising budgets and target channels for growth.
Measuring Cross-Network Impact and Attribution Challenges
Another key point discussed in the podcast is the challenge of measuring cross-network impact and dealing with attribution complexities. Zach mentions that working with multiple advertising networks, such as Google, Meta (formerly Facebook), TikTok, presents difficulties in understanding how each network contributes to the overall marketing efforts. This makes it crucial for companies to have a tool like House that can integrate with different networks and provide a holistic view of the impact. The podcast recognizes the need for reliable measurement methodologies that consider cross network reconciliation, privacy challenges, and provide accurate metrics aligned with the specific business goals and KPIs.
Leveraging Incrementality Testing for Confident Business Growth
The podcast episode also covers how incrementality testing can help companies grow their businesses with confidence. By conducting experiments and analyzing the results, businesses can identify which channels and strategies drive incremental success. This is particularly valuable for companies planning to increase their marketing budgets or expand into new channels. The guest advises that incrementality testing should be seen as an ongoing process, allowing companies to continuously optimize and calibrate their marketing spend based on real business impact. The podcast emphasizes the importance of focusing on the metrics that truly matter to the business, such as revenue, new customer revenue, and new orders, rather than relying solely on platform-based metrics.
Brand search effectiveness varies across brands and industries
Brand search effectiveness can vary depending on the brand and industry. While brand search may not always be incremental, it can still provide cost-effective results, especially when considering factors like low cost per acquisition (CPA) and competitive auction dynamics. However, in highly conquested competitive industries, brand search can be more effective. Additionally, using Google search as a third party, not necessarily for brand search, can be a strategic approach to drive specific product launches or critical periods, potentially raising the price on the competitive set and maintaining a strong presence. Overall, the effectiveness of brand search for each business can differ, making it important to consider industry dynamics and conduct structured experiments to determine the ideal approach.
Allocating ad spend based on incrementality and funnel position
Rather than relying only on last-click attribution or making straightforward decisions to shut off or allocate budget to specific channels, advertisers can use incrementality experiments to optimize ad spend allocation. By understanding the incremental value of each channel and considering their positions in the buyer's funnel, advertisers can make more informed strategic decisions. For example, allocating budget to upper funnel channels like meta or YouTube can help create awareness and get customers ready to buy, ultimately improving efficiency at the bottom of the funnel. Experimenting with different allocations and incrementality factors can guide the reallocation of ad spend to maximize overall campaign performance. Additionally, calibrating media mix models (MMM) and running experiments using platforms like house can provide valuable insights into optimal spend allocations for different channels and objectives, helping advertisers make data-driven decisions.
In the ninth episode of Season Three, Cody is joined by Zach Epstein, the Founder and CEO of Haus, a company specializing in top-of-funnel measurement and incrementality testing. They delve into the world of marketing analytics and discuss the challenges and strategies associated with measuring the effectiveness of marketing efforts at the top of the funnel.
Zach shares his insights on how to approach incrementality testing, which involves determining the true impact of marketing campaigns on customer behavior.
They explore various methodologies and tools used in these processes and highlight the importance of accurate measurement for optimizing marketing strategies.
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This season of the podcast is sponsored by Postscript and Tapcart. You can try Postscript for free for 30 days using this link: postscript.io.
And with this link, you can get up to two months free with Tapcart: tapcart.com/downtochat.