434717769_case study.edited

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Mitchell Technical Institute *

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310

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Marketing

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Nov 24, 2024

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docx

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Uploaded by AdmiralWaterGrouse38

Surname 1 Student’s Name Professor’s Name Course Date Marketing Campaign Analysis: Purchase the “Rocket Fuel: Measuring the Effectiveness of Online Advertising” 1. Was the advertising campaign effective? How many people converted (purchased a handbag) in the test group and in the control group? What was the conversion rate (%) in the two groups? The advertising campaign was successful. In the test group, 13,528 people converted (bought a handbag). In the control group, 379 people converted (acquired a handbag). Conversation rate in the test group = (converted participants in the test group)/ (total number of participants in the test group) * 100 = 13,528/553377*100 = 2.44%. Conversation rate in the control group = (converted participants in the control group)/ (total number of participants in the control group) * 100 = 379/28727*100 = 1.32%. 2. What was the increase in revenue, assuming $40/handbag, resulting from the campaign? Revenue increase = actual conversion*$40 Actual conversion = (converted participants in the test group) - (converted participants in the control group) = 13,528 - 379 = 13,149. Revenue increase = 13,149 * $40 = $525,960. 3. What was the cost of the campaign?

Surname 2 Total cost = total impression * average CPM (cost per thousand). Thus, total cost = 13,128,359 * $9/1000 = $118,155.231 4. What was the ROI of the campaign? Return on Investment (ROI) = (net income)/investment * 100 Net income = $525,960 - $118,155.231 = $407,804.769 ROI = $407,804.769/$118,155.231 * 100 = 345.14% 5. What is the minimum number of impressions (the nearest 10) required for conversion? The chart splits the impressions into groups of 30s. The conversion rate at the lowest group (1- 30) is about 0.7%. The conversion rate rises above that of the control group (1.32%) at the 31-60 range. Computations for conversion rates at the 31-60 range indicate that the minimum number of impressions required for conversion is 31. 6. At what number of impressions do returns start to decline? From the chart in question 5, a turning point is reached at 150 impressions. Any further conversation after 150 decreases the conversion rate.

Surname 3 7. What do questions 5 & 6 imply for buying impressions? The conversion rate is highest at 121-150 impressions per participant. Continuing to raise the number of exposures beyond this level increases the cost and reduce the conversion rate. It is wise to stop the campaign at 150 impressions. 8. What additional kinds of data would you collect/acquire to better segment potential customers for future marketing campaigns? Additional data would include consumers’ income level, the average amount of money a consumer spends on TaskaBella products, and their purchase frequency.

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434717769_case study.edited

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