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Liquid Death's Incrementality Focus: A Blueprint for NZ Marketing Effectiveness
Liquid Death, the canned water brand known for its distinctive branding, employs incrementality testing to rigorously evaluate its marketing spend. This data-driven approach allows them to identify truly effective tactics, ensuring investment in strategies that deliver measurable, additional business growth rather than just attributed sales.
What Happened
- •Liquid Death, a brand famed for its unconventional marketing, prioritises incrementality testing to assess campaign effectiveness.
- •They measure the true uplift in sales or brand metrics directly attributable to specific marketing efforts, rather than relying solely on last-click attribution.
- •This methodology helps them determine which marketing tactics genuinely drive new customer acquisition or increased purchases.
- •The brand uses these insights to optimise budget allocation, scaling successful channels and discontinuing underperforming ones.
- •Their approach extends beyond digital, seeking incrementality across various marketing touchpoints.
- •This strategy ensures marketing investments yield a clear, additional return on investment.
Why It Matters for NZ Marketers
- •NZ marketers often face budget constraints; incrementality offers a precise way to maximise ROI by proving what truly works.
- •Local brands can leverage this approach to differentiate themselves in competitive markets by demonstrating tangible impact to stakeholders.
- •Understanding incremental lift helps NZ businesses avoid vanity metrics, focusing instead on real business growth.
- •It provides a robust framework for evaluating traditional and digital media spend, crucial for diverse NZ media landscapes.
- •This method can justify continued investment in innovative or unconventional campaigns if they prove incrementally effective.
- •New Zealand's smaller market size means every marketing dollar must work harder; incrementality ensures efficiency.
Strategic Implications
- •Adopt a test-and-learn culture, implementing controlled experiments to isolate the impact of specific marketing activities.
- •Shift focus from attribution models that may over-credit certain channels to incrementality measurement for true impact.
- •Allocate marketing budgets based on proven incremental value rather than historical spend or perceived channel importance.
- •Invest in robust measurement tools and expertise to accurately track and analyse incremental lift across all channels.
- •Challenge existing marketing assumptions by continuously testing and validating the effectiveness of campaigns.
- •Communicate marketing success internally using incremental metrics, demonstrating direct contributions to business objectives.
Future Trend Signals
- •Increased adoption of advanced measurement techniques beyond last-click attribution, focusing on true business impact.
- •Greater demand for marketing platforms and agencies that can provide robust incrementality testing capabilities.
- •A shift towards performance-based marketing models where success is tied directly to incremental gains.
- •Enhanced integration of first-party data with incrementality frameworks to create more precise customer insights.
Sources
Editorial note: This analysis is original, AI-assisted editorial content. All source material is attributed with links. No full articles are reproduced. Short excerpts are used under fair dealing principles.
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