Great article, Andrew! I completely agree that there's often an inverse correlation between ROAS and iROAS, and optimizing toward iROAS is the right way to manage advertising dollars. One question I have for Incremental's research is: how can iROAS be higher than ROAS in Sponsored Brands campaigns? By definition, iROAS should be the incremental portion (a subset) of ROAS, and I can't think of reasons other than different attribution methodologies (window length, halo effects, view vs. click) or different metric calculations (like excluding certain spend or including more sales for iROAS) that would result in iROAS being higher than ROAS. Thanks in advance for the clarification.
Great article, Andrew! I completely agree that there's often an inverse correlation between ROAS and iROAS, and optimizing toward iROAS is the right way to manage advertising dollars. One question I have for Incremental's research is: how can iROAS be higher than ROAS in Sponsored Brands campaigns? By definition, iROAS should be the incremental portion (a subset) of ROAS, and I can't think of reasons other than different attribution methodologies (window length, halo effects, view vs. click) or different metric calculations (like excluding certain spend or including more sales for iROAS) that would result in iROAS being higher than ROAS. Thanks in advance for the clarification.