Udacity Project 6 Display Adwords
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The document outlines the evaluation of three advertising campaigns aimed at enrolling students in a digital marketing nanodegree, with an emphasis on assessing return on investment (ROI) and suggesting optimizations. Key results show varying performance, with the first campaign achieving the highest profitability, while the second one may require reevaluation due to high costs per acquisition. Recommendations for future efforts include A/B testing diverse ads, adjusting targeting strategies, and leveraging video and dynamic advertisements to enhance engagement.
![Formulas:
Conversion Assumption: 0.2% Conversion via
Landing page
Calculating #of Sign Ups: Clicks to the landing page
*0.002 = # of Student Sign Ups
Note: Please round to the nearest whole number
CPA: Cost of Campaign/# sign ups = CPA
Note: Please round to the nearest cent
ROI: [(299 Profit) - CPA] * # of Student Sign Ups = ROI](https://image.slidesharecdn.com/project6-200704213535/85/Udacity-Project-6-Display-Adwords-3-320.jpg)
Udacity Project 6 Display Adwords
- 2. Assumptions Marketing Objective: You are running an advertising campaign with the goal of signing up students for the Digital Marketing Nanodegree Cost: The cost of the degree is $999 Profit: For the purpose of this assignment, assume a profit margin of 30%, meaning that Udacity makes $299 in profit per student that signs up. Campaigns: We want to aggressively grow the program, but, we want to do it without losing money. We ran two different advertising campaigns. One was a display advertising campaign, one a video advertising campaign.
- 3. Formulas: Conversion Assumption: 0.2% Conversion via Landing page Calculating #of Sign Ups: Clicks to the landing page *0.002 = # of Student Sign Ups Note: Please round to the nearest whole number CPA: Cost of Campaign/# sign ups = CPA Note: Please round to the nearest cent ROI: [(299 Profit) - CPA] * # of Student Sign Ups = ROI
- 4. Part 1 Evaluate a Display Image Campaign
- 5. Display Image Campaign: Overall Results Find below the overall results of the Display Image Campaign targeting the Affinity Audience. The Affinity Audience consisted of Business Professionals Social Media Enthusiasts.
- 6. Calculate the ROI 1. Present the results of the overall campaign by completing the table below. 2. Highlight Key Results 3. What was the overall ROI of the campaign? Was it Positive or Negative? Creative Clicks Impressions CTR Avg CPC Campaign Results 1243 200957 .62% $.36 Cost Conversion Rate # New Students CPA ROI +/- $448.95 .2% 2.48=2 224.48 +$149.96
- 7. How would you optimize this campaign? Provide at least three suggestions to improve this campaign. (Answers might include things like: A/B testing, different creative, changes to targeting) Suggestion 1: Changes to targeting, considering this ad has been shown 200k times. It would be worth researching if certain groups of individuals (demographics, where they saw the ad, what state do they live in, age, number of times ad has been seen) have a higher likelihood of converting to a consumer on that first impression. Suggestion 2: Creative change A/B Testing, would having a female student or one of different race impact the results? This would be familiarity bias, where if an African-American, Hispanic or Caucasian student was shown would someone be more likely to click the ad? Suggestion 3: A/B Testing, if we mention that Udacity is offering the first month for free. Would that create more clicks vs. the original copy?
- 8. Part 2 Evaluate a Display Image Campaign
- 9. Display Image Campaign: Site Targeting Find below the overall results of the Display Image Campaign targeting placements (site targeting). This audience consists of the Digital Marketing partners’ landing pages.
- 10. Results: Calculate the ROI 1. Present the results of the overall campaign by completing the table below. 2. What was the overall ROI of the campaign? Was it Positive or Negative? Creative Clicks Impressions CTR Avg CPC Campaign Results 407 67833 .6% $0.57 Cost Conversion Rate # New Students CPA ROI +/- $231.99 .2% .82=1 $232 +$67
- 11. How would you optimize this campaign? Provide at least three suggestions to improve this campaign. (Answers might include things like: A/B testing, different creative, changes to targeting etc…) Suggestion 1: Changes to targeting, while this ad does have a 58% higher CPC value, is that true for all the segmented audiences (demographics, website displayed on, is there a high number of people asking the ad not to be shown)? If after an analysis, there are no groups performing close to $.35 CPC then this ad will be scrapped. Suggestion 2: Creative Change A/B Testing- Should we change the ad to show a student testimonial with a quote about his/her experience? The copy and the picture appear to be inconsistent as the copy states “designed for students like you” and the picture shows Anke A. an instructor, not a student. Suggestion 3: Copy change- Should the copy below be changed to highlight the course involves projects created in collaboration with Google, Facebook and Mailchimp? “Gain real-world experience by doing proejcts created in collaboration with Facebook, Google and Mailchimp.”
- 12. Part 3 Evaluate a Display Image Campaign
- 13. Display Image Campaign: Overall Results Review below the overall results of the Display Image Campaign targeting visitors to the Digital Marketing Nanodegree Program landing page
- 14. Results: Calculate the ROI 1. Present the results of the overall campaign by completing the table below. 2. What was the overall ROI of the campaign? Was it Positive or Negative? Creative Clicks Impressions CTR Avg CPC Campaign Results 670 109,994 .61% $0.35 Cost Conversion Rate # New Students CPA ROI +/- $234.50 .2% 1.34=1 $234.50 +$64.50
- 15. How would you optimize this campaign? Provide at least three suggestions to improve this campaign. (Answers might include things like: A/B testing, different creative, adding or changes to targeting, etc…) Suggestion 1: Audience Targeting: I know I’m sounding like a broken record, but still analyze where it performed best, whom it performed best, how many times was the ad shown to the average person and are there any weak performing sections (below .3% CTR after 1000 impressions for instance?) Suggestion 2: A/B Testing- Would changing the ad’s color to purple, red, blue make a difference? Compared to the first ad, both are identical except for the background color (green vs. purple) and the person being shown (young male Asian and an African-American female both in a white background room). Suggestion 3: Change in ad copy, would offering a “Free 7-day trial, no credit card required, try for yourself before commiting.” create more clicks? As typically courses do cost money and young people would rather buy a pair of Jordans, or a LeBron jersey than invest in a course.
- 16. Part 4 Results, Analysis, and Recommendations
- 17. Which campaign performed the best? Why? Considering the 3 campaigns below, state which one had the best performance and why. The 1st one beat both the 2nd and 3rd (ROIs of $150, $67 and $64.50 respectively). However, the third one only has half the impressions that the first one had (200k vs. 100k) and a nearly identical CPC (1st:$.36, 3rd:$.35). The 2nd ad should be scrapped as it ran a CPC of $.57 (unless there is a specific demographic/niche category that can run below at minimum less than$.50 CPC as $.57 makes the profit margins extremely thin). From a risk standpoint the 1st one is superior as it has generated 201k impressions and the 3rd one generated 110k impressions. It would be worth investigating the actual ad impression to course conversion rates (I know its outside the scope of this course) as unless we see the actual numbers, we can’t say for certain which ad is most superior. Both ads should still run and it is possible depending on the demographics (gender, race, age, education, income), online behaviors, where the ads were run (websites) and the format it was on (was it on a smaller or bigger rectangle/square?) It is possible both ads could have their own unique audience, website combinations that are completely different with one another (first one does better with males, second one does better with females and vice versa first one has twice CPC for females, second one same thing for instance). Also no statistical significance in the CTR by the way.
- 18. Recommendations for future campaigns Imagine you had additional budget, given your campaign evaluation, how would you use it? ● You may use “bullet points” for your analysis and may add as many slides as needed ● The following prompts can help you structure your answer: ○ Would you focus on certain Ad Groups, Ads or Targeting? ○ Would you change any of your existing Ads or Targeting or add any new ones? ○ Would you set up an A/B test, and if so, how would you go about it? ○ Would you make changes to the landing page, and if so, what kind of changes and why?
- 19. New ads ● Specifically go for very different ads, like what if for those same two ads they are shown in rotation. What I mean is show as many different faces as much as possible, where the first ad shows a male with blonde hair wearing a red shirt, a female with black hair wearing a blue shirt (not exact, just what the testimonials happen to look like and what they were wearing). ● Look into Udemy’s, Coursera’s ads, model them and give those ads a try (not copy, just overall structure). ● Video ads, instantly play video ads of student testimonials. ● Dynamic ads, like one showcasing the rise of digital advertising. Another doing the different faces (like one every second or .5 seconds), another taking the company logos (Facebook, Instagram, Snapchat, Tik Tok, Google, YouTube) and then follow it with “Want a 7-day free trial to learn these platforms? Come check out Udacity). ● Essentially, trying all these different ads until we get some clear winners (with all this data generated, we will be able to establish a benchmark, know which ones are most profitable, A/B test the winners, continue to let the winners run). ● But still try new ideas as we never know exactly what will work for each audience.