Measuring YouTube’s contribution to multiple sales channels
In the evolving digital landscape, the brand understood the importance of storytelling to engage customers and build brand loyalty. They dedicated a significant portion of their budget to YouTube ads, using videos to communicate the inspiration behind their products and capture customer interest. However, as an upper-funnel channel, proving the true effectiveness of YouTube ads and their impact on various sales channels can be challenging. The team was looking for a scientific, data-driven approach to measure YouTube's true contribution and then turned to WorkMagic for its incrementality-based attribution.
Leveraging geo-based incrementality testing to calibrate attribution
To address the challenge, the brand partnered with WorkMagic to run a geo-based incrementality test. Over a three-week period, they focused on orders generated through both Shopify and Amazon, dividing designated market areas (DMAs) into control and test groups. By comparing the performance in areas where YouTube ads were active with those where they were paused, the team could accurately gauge YouTube’s incremental impact.
#1. YouTube Ads' Actual Impact on Shopify Orders
The incrementality test revealed that YouTube ads contributed 3.38% to Shopify orders—lower than Google Ads’ reported 5.86%, but higher than what traditional last-click attribution models capture. This finding highlighted YouTube’s upper-funnel role in driving awareness and consideration, where last-click models often undervalue it.
#2. YouTube Ads' Halo Effect on Amazon Sales
Using WorkMagic’s capabilities, the brand also conducted an incrementality test on their Amazon store. The results showed that, despite no direct traffic from YouTube to Amazon, the ads had a substantial halo effect, increasing Amazon orders by 8.93%. This impact was even greater than on Shopify, showing that YouTube ads were driving brand awareness that extended beyond the company’s direct-to-consumer website.
Driving informed decisions and stronger growth
With WorkMagic’s incrementality testing, the brand gained a comprehensive understanding of YouTube’s role in driving incremental sales and influencing customer behavior across both Shopify and Amazon. They were able to precisely quantify the incremental impact on each sales channel, enabling more informed media planning and sales forecasting.
Additionally, by applying incrementality-based attribution, they started to optimize their day-to-day operations at the channel, campaign, and ad levels. This data-driven approach empowered them to fine-tune their strategy, maximize sales, and significantly improve returns on ad spend.