IDS 025

Online Advertising Experiment


JMP platforms and statistical methods

Graph Builder:
Comparative dot plots, confidence interval for the mean, F-test for one factor analysis of variance

Fit Y by X:
Multiple comparisons

Formula Editor:
Creating new variables

Objective

Use ANOVA methods to compare the performance via the click-through rates of four different advertisement design styles and three different promotion offers across 20 different websites.

Problem statement

An online clothing retailer is interested in studying the effect that different advertising styles and promotional offers have on consumers’ engagement.

An experiment was designed to test the performance of four different styles of an advertisement for a casual wear line. These four advertisement styles varied design elements such as imagery, messaging, and ad copy; they are referred to as Ad 1, Ad 2, Ad 3, and Ad 4. In. addition, three different promotional offers were varied in the experiment:

Promo 1:
Receive a one-time credit of $40 to use in a separate future purchase within the next 60 days when the total amount for the current purchase exceeds $150.

Promo 2:
Receive a one-time credit of $50 to use in a separate future purchase within the next 30 days when the total amount for the current purchase exceeds $150.

Promo 3:
Receive 30% off on current purchase of $150 or more.

Each possible combination of the four advertisement styles and three promotional offers was studied, resulting in 4 x 3 = 12 treatment combinations. The experiment was conducted by displaying one of the 12 different ad/promo combinations each day across June and July (61 days) on 20 different lifestyle and leisure website properties. The click-through rate (CTR) per thousand ad impressions for each day was observed.