Rocket Fuel is an analytics-based agency with a vision of transforming the digital advertising industry through big data and artificial intelligence. They ran a trial advertising trial campaign for a newly released handbag model for TaskaBella Inc., a manufacturer of women’s luxury accessories. Rocket Fuel is meeting with the client to discuss the campaign and to present evidence that the return on investment (ROI) was strongly positive.
Purchase the “Rocket Fuel: Measuring the Effectiveness of Online Advertising” case from Harvard Business Publishing using this link:
Read pages 1-3 of the case study. Answer the following questions, using the data in the attached Excel file.
- Was the advertising campaign effective? How many people converted (purchased a handbag) in the test group and in the control group? What was the conversion rate (%) in the two groups? (25 points)
- What was the increase in revenue, assuming $40/handbag, resulting from the campaign? (10 points)
- What was the cost of the campaign? (10 points)
- What was the ROI of the campaign? (10 points)
- What is the minimum number of impressions (the nearest 10) required for conversion? (10 points)
- At what number of impressions do returns starts to decline? (10 points)
- What do questions 5 & 6 imply for buying impressions? (10 points)
- What additional kinds of data would you collect/acquire to better segment potential customers for future marketing campaigns? (15 points)