Assignment on
Marketing Campaign Analysis
Scenario:
Rocket Fuel Inc., leveraging big data and AI, executed a digital ad campaign for TaskaBella's new handbag, resulting in 15,000 purchases from 590,000 identified users. They're set to present the positive ROI and campaign effectiveness to TaskaBella, highlighting the strategic use of ad timing and analytics.
Data:
an excel sheet contains user's information, such as age and income level, user's interactions with the campaign, such as total impressions, and purchase information.
Conversion rate
Calculate conversion rate using pivot table in excel
Based on the calculation, the treatment group has a conversion rate of 2.65%, and the controlled group has a conversion rate of 1.27%. The treatment group has a higher conversion rate than the controlled group; therefore, it is reasonable to say that the advertising campaign was effective.
Increase in Revenue & ROI Calculation
Calculate revenue and ROI using pivot table in excel
The increase in conversion rate between treatment group conversion rate and controlled group conversion rate is about 1.38%. Assuming $40/bag, the increase in revenue would be about $305464.10.
After calculating the cost, we could conclude that the ROI is about 159%
Minimum threshold-level of impressions
Calculate minimum threshold-level of impressions (the nearest 20) required for the campaign to be effective using pivot table in excel
The conversion rate for controlled group is 1.27%. The campaign would consider effective if the conversion rate is higher than the controlled group. Based on the calculation, the minimum threshold-level of impressions would be 21-40.
Recommendation for purchasing range of total impressions
Based on total number of campaign ad impressions user encountered over the campaign, calculate conversion rate, cost, and ROI using pivot table in excel.
The ROI suggested that we should choose to purchase between 81-100 impressions. A higher ROI indicates that the campaign generates more revenue than it cost to execute.
