zoom_MG401 Session 18 (DS) 60ct.mp4 Bazaar.comzoom_MG401 Session, 18 (DS Case Facts Serelore tyes * Bazaar uses both display advertising and search engine advertising on Google and Bing. * Branded keywords include “Bazaar,” “Bazaar shoes,” and “Bazaar guitar” * Nonbranded keywords include keywords such as “shoes” and “guitar”. * Mix of potential customers visiting the company’s website from both search engines is similar. * Bing campaign is much smaller than their Google campaign. * But conversion probability and margin per conversion numbers are the same.zoom_MG401 Session 18 (DS) 6Oct.mp4. * Sponsored ad campaign ran for 12 weeks. * Google campaign: ran for only 10 weeks and the got suspended due to technical glitch * Bing campaign was unaffected by this glitch. * Issue... * Issue of effectiveness of Sponsored ads , using ROI as benchmark. eens oaROI Calculation by Bob + Average Cost per click (CPC) for a sponsored click = $0.60 * Once consumers land on Bazaar.com, their average probability of making a purchase on website, Conversion Rate = 12% * Average margin per conversion = $21 * Average revenue per click = 0.12 x $21 = $2.52 + ROI = ($2.52-$0.60)/($0.60), or 320.0%. Great!!!zoom_MG401 Session 18 (DS) 6Oct.mp4. exam Burezoom_MG401 Session 18 (DS) 6Oct.mp4 ® Pros & con tor using sponsored ad Branded eyword for * Branded keyword searches mostly done by people seem to be already aware of our website and actively looking for it. * Issue of Competitors put their sponsored ad for your branded keywords. * Run the risk of leakage to competitors. * Can existing data analysis help?* Bob: “interruption was caused by a technical glitch and not by any strategic decisions on our side, it would be safe to call this a natural experiment.”zoom_MG401 Session 18 (DS) 60ct.mp4 Experiments * To establish causality * Many designs iT We Dieevaieea ldTrue Experimental Designs: Pretest-Posttest Control Group Design TWAS v EG: 0, XO, Gaogte Xba fads v CG: 03" wale 04 Bing {a * Test units are randomly assigned to either the experimental or the control group. + A pretreatment measure is taken on each group. * The treatment effect (TE) is measured as:(0, - 0,) - (Oy - 03). * Selection bias is eliminated by randomization. + The experimental result is obtained by: (0, - 04) - (04 - 03) Interactive testing effect is not controlled.zoom_MG401 Session 18 (DS) 6Oct.mp4. Difference in Difference * Comparing with data from Bing Weeks 1-9 Weeks 10-12 W1-9 and W10-12 (Diff 1) Google 156,585 148,477 Bing 19,597 18,901 Normalized reduction in traffic (Diff 2)+ Average total weekly traffic from Google for weeks 1-9 is 156,585 (cell A15) and * Average weekly incremental traffic attributable to sponsored ads is 1.62% of the total weekly traffic for that period, * Average weekly incremental traffic attributable to sponsored ads is 156,585 x 1.62%, or 2,544zoom_MG401 Session 18 (DS) 6Oct.mp4. * Average weekly profit that Bazaar.com makes from the traffic attributable to sponsored ads is 2,544 x $2.52 or $6,411 411 where $2.52 is the average revenue per click. * The corresponding average weekly traffic through sponsored ads is 31,390, which costs\31,390 x $0.60,,0r $18,83 834 where $0.60 is the average cost per sponsored click.zoom_MG401 Session 18 (DS) 6Oct.mp4. * Bazaar.com is losing money on sponsored searches and that the ROI is ($6,411 - $18,834)/$18,834, or -65.96% Dgel =a ey bmn! — Brerrdsh kay bs 2dr x ee Sak nade, alt Lh Dscrxbwe YDifference in Difference Dd * Comparing with data from Bing Weeks 1-9 Weeks 10-12 W1-9 and W10-12 (Diff 1) Google 156,585 148,477 Bing 19,597 “ 18,901 Normalized reduction in traffic (Diff 2)Zoom-MG401) Session 18,(DS) 60ct.mp4 00] uw at Owlie Gp. - * Bazaar.com is losing money on sponsored searches and that the ROI is ($6,411 — $18,834)/$18,834, Or 65.96% > terppaim = ay fee y Nobind 2 Pracnrdssh kay WS Ron \s nak addy Vee ie ee “ ~Be tet > eee oe/%, \=2\¥ a