Optimizing a campaign
Ok, lets make a quick analysis of each campaign flow and their elements (banners, pre-sale pages), CTR (click trough ratio, calculated like this: clicks / impressions), CR (pre-sale page conversion ratio, calculated like this: clicks / sales) and see what happened to get your 50% ROI, before you go further and start optimizing the campaign. We will start with the less performing flow:
- Flow One: 0% ROI from the combo: banner 2 -> direct link -> offer. Why this combination is not performing at all? You will notice that the banner 2 has similar CTR with other banner 2 combinations, but still no conversions. 3% ROI from the combo: banner 1 -> direct link -> offer. Banner 1 has very close CTR to the good performing banners, but even with this CTR there are very few conversions and respectively low ROI. Obviously the banner performance in both combos is not the main problem. We move to the next element - the direct link leading the visitor to the sales page. CR of this page is very low - 0.05%. Usually when one starts a campaign almost always uses a pre-sale page. This way you have more flexibility over the advertising of your product and there you convince the potential customer to go further and eventually spend money. Here, in this case, we can conclude almost certainly that direct linking to this particular offer is not working.
- Flow Two: 100% ROI from the combo: banner 1 -> control page -> offer. Obviously here there is something that drive conversions and you are on 100% ROI. One can go ahead and analyze in details which exactly element of the page itself + other factors drive conversions to reach this 100% ROI, do more split tests and optimize it further for a higher ROI. 45% ROI from the combo: banner 2 -> control page -> offer. Banner 2 has the same CTR ratio as in flow one, but its on 45% ROI. We may conclude that the next element - the pre-sale control page is working well with a combination with banner 1.
- Flow Three: 150% ROI from the combo: banner 1 -> pre-sale page 2 (angle 2) -> offer. Our winning combo! This combination works well: banner 1 (CTR 0.13) and pre-sale page 2 (angle 2) CR 1.75%. We will go ahead and do more split tests, optimize it further for even better ROI.
- Flow Four: 75% and 35% ROI for each one of the combos. Both banners have good CTR, but the pre-sale page 1 (angle 1) has low CR (0.75%). We can conclude that most likely the angle and page with its elements doesn't work so well.
Overall we can make these conclusions:
- Banner 1 over performs Banner 2 and it is our choice for further tests.
- Pre-sale page 1 using angle 1 (our winner!) performs much better than pre-sale page 2 (angle 2), the control page and over performs direct linking.
- Using pre-sale page works much better than direct linking for this particular offer.
- Always use at least couple of angles to split test and more than one banner.
One important thing to pay attention on when optimizing your campaign:
Never make assumptions that something will work or not based only on your opinion. Imagine the situation:
- Banner 1 gets 10 clicks and 2 conversions
- Banner 2 gets 12 clicks and 3 conversions
You decide to go with banner 2. Your logic dictates it. Wrong. you CAN'T make the right decision, because you do not have enough data to conclude what works better. Always take data driven decisions based on a statistical significance when the final results are close to each other. I know, it sounds scary, but that's the right way.