Glossary · Analytics
Net New Revenue
The additional revenue generated by a marketing initiative above and beyond what would have occurred organically, used to calculate true incrementality of marketing spend.
How it works
Net new revenue matters because some customers who see your Meta ad would have purchased anyway through direct or organic search. True incrementality testing (via holdout groups) reveals the actual incremental lift of advertising. If 1,000 people saw your ad and 50 bought ($5,000 revenue), but 20 would have bought anyway ($2,000), the net new revenue is $3,000 and the true ROAS is lower than reported. Most D2C brands overestimate Meta ROAS by 20-40% without incrementality measurement.