TPO Incremental

The additional income produced by spending a dollar on promotional activities is referred to as incremental trade promotion spend. On the other side, nonincremental dollar refers to the revenue that would have been produced regardless of any promotional efforts. This is a crucial metric that marketing leaders of CPG companies compute to analyze the health and performance of any trade marketing campaign.

In general, incremental spending is recommended when it comes to trade promotions because it promotes growth in sales and revenue. Businesses can increase their market share and get a good return on investment (ROI) by funding promotions that result in incremental sales. On the other hand, non-incremental spending might not result in any increased sales and might even have a negative return on investment.

For instance, a growing CPG brand may need to invest in trade promotions even if they do not result in additional sales if they are seeking to defend their market share or counteract the promotional efforts of a competitor. In such circumstances, the objective might be to stop a decrease in sales rather than spur growth.

Image Recognition can help analyze and generate insights by examining data from retail locations and promotional activities to determine the effect of promotions on sales, AI can assist CPG brands in tracking their incremental vs. non-incremental dollar for trade marketing spends.

Images of promotional displays can be analyzed by AI to assess how well they work to increase sales. The AI can identify whether the displays are producing incremental or non-incremental revenue by comparing sales data for products that are prominently shown to those that are not.