Incremental Value Added

Marketing dictionary

Incremental Value Added

A measurement technique IEG uses with corporate clients which compares the return a company earns from sponsorship above and beyond what it would expect from equal investment in other media. For example, if a credit card company is going to conduct a direct mail campaign, its expectation might be to break even. So if the company spent $100,000 to buy lists and print the pieces and pay for the postage and the campaign brought in $100,000 worth of new accounts, the effort would have been considered a success. If itâ€(TM)s $100,000 sponsorship generated $150,000 in new accounts, IVA would be 50 percent. The sponsorship is thus adding incremental economic value. Source: IEG

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