The Importance of Multi-Variable Analysis – E-Commerce $Case Study - Audit

A unique E-commerce electronics client positioned itself as the better alternative to the mainstream surge protector. Tasking Variable Media to audit their existing campaign creative, targeting, and optimization we were able to glean insights that prove valuable. With each and every potential client campaign review opportunity, we weigh a multitude of performance metrics and delivery trends which yield a campaign understanding usually never before uncovered.

Our potential advertising partner learned an immense amount during the audit process explained in the solution area below. Moreover, what we were able to glean over the seven month period help prove the importance of multi-variable analysis.

  • E-Commerce 6-Month Tech Campaign ROI

The challenge for our E-Commerce tech client is the return on investment (ROI). Similar to most advertisers, our client is looking for a minimum 1 to 1 ROI and if possible prove scalability above this threshold. Our next challenge will be to audit the existing campaign to surface any potential insights that could help us project performance for a possible campaign.

Each and every part of our campaign checklist is essential to our future client partners. For our tech e-commerce advertiser we focused on three key areas:

  • Demographics (Age & Gender)

    A benefit to the YouTube platform can segment users by age & gender. Both play a crucial role as we analyze each audience’s user behavior.

  • Parental Status (Parent vs. Non-Parent)

    Our parental variable is an important first level variable that could help an advertiser understand their creative or product and how it resonates with users that have or do not have children. Based on results an advertiser might develop a more parent-focused creative or call to action.

  • Network (Display Network vs. YouTube)

    Ad viewing environment provides a deeper understanding of the best conversion conditions. The display network provides a unique experience most times for users as different websites are present vs. YouTube which yields a similar experience with more click opportunities.

We analyzed the data taking a multi-variable approach in a few key areas listed below. More variables were included in our conversation and dashboard with the client however the insight below provides a clear understanding of what the positives and negatives were within each audience segment

  • Demographics (Age & Gender)

    Females produced an 11% higher ROI despite having a higher CPV. The ROI performance improvement can be sourced to an 18% higher click to conversion ratio.  Women delivered a better than male ROI in every age group except 65+.

    Best performing age groups by gender. Female 55-64, 223% ROI. Male 65+ 188% ROI.

     

    Tech Adv. Audit  Views  Clicks Conversions $ Value  CPV  CTR  VR  CTC  ROI
    Females 16,551,950 351,361 16,712 $1,848,850 $0.06 0.44% 21% 4.8% 195.23%
    Males 12,206,870 225,944 9,093 $955,169 $0.04 0.43% 23% 4.0% 176.13%
    Grand Total 21,055,650 467,969 23,311 $2,587,578 $0.05 0.44% 22% 4.5% 188.28%

     

  • Parental Status (Partent vs. Non-Parent)

    Non Parents performed 32.6% better than Parents generating over 25M views and $2.8M in conversion value. This clear understanding of performance drove the bulk of the volume (65%+) to Non-Parents.

     

    Tech Adv. Audit  Views  Clicks Conversions $ Value  CPV  CTR  VR  CTC  ROI
    Not a parent 18,429,758 355,307 18,742 $2,018,156 $0.05 0.43% 22% 5.3% 208.63%
    Parent 7,363,255 97,126 5,339 $600,034 $0.05 0.29% 22% 5.5% 157.33%
    Grand Total 25,793,013 452,433 24,081 $2,618,190 $0.05 0.39% 22% 5.3% 194.12%

 

  • Network (Display Network vs. YouTube)

    The Display Network generated an 87% better ROI than YouTube, 273% vs. 146%. However, a fraction of the less than half of the views sourced. While YouTube does contribute a 5% click to conversion ratio, Display Network is slightly below at four while driving a 2x CTR at 0.6% vs. 0.3%. This influx of additional users while maintaining a healthy conversion rate is the reason for the higher than average ROI performance.

     

    Tech Adv. Audit  Views  Clicks Conversions $ Value  CPV  CTR  VR  CTC  ROI
    Display Network 9,771,057 288,229 12,444 $1,735,244 $0.05 0.64% 22% 4.3% 273.24%
    YouTube Videos 18,987,763 289,076 13,361 $852,334 $0.05 0.33% 22% 4.6% 146.02%
    Grand Total 28,758,820 577,305 25,805 $2,587,578 $0.05 0.44% 22% 4.5% 188.28%

The result of our multi-variable analysis within our client audit was a success. This client learned an immense amount during the process but more importantly, they said was our data visualization and the simplification of what is considered the sophisticated audience analysis of today, specifically as it pertains to video.

Below were the optimization recommendations based on our analysis of our core variable groups:

  • Demographics

    Remove 18-44 in both Male and Female genders

    Concentrate on 65+ M and 55-64 F segments to scale performance

  • Parent vs. Non-Parent

    Continue shift spending toward Non-Parent audience

    F 55-64 Non-Parents generating 253% ROI, shift from 65+ at 194% ROI which held the bulk of view volume

  • Network

    Flip spending to focus more delivery on display network from Youtube

    45-54 Non-Parents on the Display Network are driving a 409% ROI with Females at 413%

  • Female ROI
  • Male ROI
  • Parent ROI
  • Non Parent ROI
  • Display Network ROI
  • YouTube ROI

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