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Ad Testing Research & Findings
What are the Keys to Successful Testing?

•   Design your test around a single question
•   Have a large differentiation b/w tested elements
•   Account for changes in temporal behavior
•   Collect enough data to reduce margin of error
•   Segment results to provide added insight
•   Act on the results!




                          2
Test 1: Is Running Ads on Brand Queries a
Waste of Money?
Example SERP w/o Ad   Example SERP w/ Ad




                      3
Test Design

•   1 week ads on 1 week off
•   No issues of seasonality or promotion
•   30 Branded Keywords
•   1 version of ad




                          4
Did the Ads Drive Traffic?




                     NO
               • Google -1.3%
               • Yahoo -8.7%
               • Live -7.3%


                       5
Did the Ads Increase Conversion Rate?




                  YES
             • Google +17.9%
             • Yahoo +32.1%
             • Live +11.7%


                     6
Did the Ads Increase RPV?




                  YES
             • Google +15.4%
             • Yahoo +47.0%
             • Live +27.5%


                    7
New Questions

• Right Time? Marketing to Intent?
• Power of Persuasion?
• Power of Brand in Search?




                        8
Test 2: What is the Best Ad to Increase
Conversion?
       Ad Testing                          Element 1
       Multivariate Testing Works          Element 2
       Increase Conversion Rates           Element 3
       ottodigital.com/ads                 Element 4


                 4x3 L9 Orthogonal Array



    4 Elements                             3 Variations




                            9
Test Design

• 9 Ads Created and Tagged w/ URL Parameter
• Landing and Thank You Page Tagged
• Ad Serving Optimization Turned OFF




                      10
What does an L9 Array Really Look Like?
  Recipe (9)    Title (3)             D1 (3)                       D2 (3)                URL (3)


  A - Control   {keyword}             Search {AdGroup}             Compare Products      www.brand.com
                                         suppliers                    Today
  B             {keyword}             Find {keyword} suppliers     Search Thousands of   www.brand.com/
                                                                      Products              {keyword}
  C             {keyword}             Find Parts fast at (brand)   {keyword} catalog     www.brand.com/
                                                                       search               catalogs
  D             {keyword} suppliers   Search {AdGroup}             Compare Products      www.brand.com/
                                         suppliers                    Today                 catalogs
  E             {keyword} suppliers   Find {keyword} suppliers     Search Thousands of   www.brand.com
                                                                      Products
  F             {keyword} suppliers   Find Parts fast at (brand)   {keyword} catalog     www.brand.com/
                                                                       search               {keyword}
  G             {keyword} catalog     Search {AdGroup}             Compare Products      www.brand.com/
                                         suppliers                    Today                 {keyword}
  H             {keyword} catalog     Find {keyword} suppliers     Search Thousands of   www.brand.com/
                                                                      Products              catalogs
  I             {keyword} catalog     Find Parts fast at (brand)   {keyword} catalog     www.brand.com
                                                                       search




                                                       11
What Were the Results?
 Recipe        Visitors    Conversion   Lift
 A - Control   11.80%      5.88%        ---
 B             14.30%      4.29%        -27.05%
 C             14.04%      6.08%        3.42%
 D             9.34%       2.57%        -56.29%
 E             13.00%      6.16%        4.72%
 F             9.42%       5.38%        -8.50%
 G             10.06%      5.04%        -14.32%
 H             10.41%      5.13%        -12.82%
 I             7.63%       8.04%        36.71%


                          12
What is the breakdown?

• Other Ads the Used Winning URL
   – Control
   – +4.72%
• Other Ads the Used Winning D1
   – +3.42%
   – -8.5%
• Other Ads the Used Winning Title
   – -14%
   – -12%




                           13
What Ad Elements Influenced Conversion?
  Element   Winning Alternative            Influence on
                                             Conversion

  Title     {keyword} suppliers            13.54%


  D1        Find {keyword} suppliers       53.53%


  D2        Search Thousands of Products   23.56%


  URL                                      9.37%
            www.brand.com/{keyword}




                             14
What’s Better?

  Winning Recipe                  Best Predicted

{keyword} catalog            {keyword} suppliers
Find parts fast at (brand)   Find {keyword} suppliers
{keyword} catalog search     Search Thousands of Products
www.brand.com                www.brand.com/{keyword}




                             15
What’s Better?

  Winning Recipe                  Best Predicted

{keyword} catalog            {keyword} suppliers
Find parts fast at (brand)   Find {keyword} suppliers
{keyword} catalog search     Search Thousands of Products
www.brand.com                www.brand.com/{keyword}


  Best Predicted +52% Lift in Conversion Rate




                             15
Test 3: What are the effects of Quality Score?




                      16
Who & What Determines Relevance?
                Recipe A-C
                Title: “{keyword}”

     Recipe     Impressions Conversion Rate

     Recipe A   265,909              5.72%

     Recipe B   265,045              5.09%

     Recipe C   264,784              5.49%




                         17
Who & What Determines Relevance?
                Recipe D-F
                Title: “ Find {keyword}”

     Recipe      Impressions Conversion Rate

     Recipe D    47,093             8.59%

     Recipe E    47,289             5.24%

     Recipe F    47,066             7.76%




                           18
Who & What Determines Relevance?
                Recipe G-I
                Title: “The Wait is Over”

     Recipe       Impressions Conversion Rate

     Recipe G     46,518            9.84%

     Recipe H     46,795            8.11%

     Recipe I     46,579            11.76%




                            19
Who Decides Relevance?

  Group G-I had
• 17% of the Impressions of A-C
• 32% of the Conversions of A-C
• 82% higher Conversion Rate than A-C




                          20
Jonathan Mendez, Chief Strategy Officer

                   Thanks!
      • optimizeandprophesize.com - My Blog
      • ottodigital.com/blog - OTTO Blog
      • offermatica.com - Technology & Parent




                         21
Jonathan Mendez, Chief Strategy Officer

                   Thanks!
      • optimizeandprophesize.com - My Blog
      • ottodigital.com/blog - OTTO Blog
      • offermatica.com - Technology & Parent




                         21

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Ad Testing Research and Findings - SES NYC 2007

  • 2. What are the Keys to Successful Testing? • Design your test around a single question • Have a large differentiation b/w tested elements • Account for changes in temporal behavior • Collect enough data to reduce margin of error • Segment results to provide added insight • Act on the results! 2
  • 3. Test 1: Is Running Ads on Brand Queries a Waste of Money? Example SERP w/o Ad Example SERP w/ Ad 3
  • 4. Test Design • 1 week ads on 1 week off • No issues of seasonality or promotion • 30 Branded Keywords • 1 version of ad 4
  • 5. Did the Ads Drive Traffic? NO • Google -1.3% • Yahoo -8.7% • Live -7.3% 5
  • 6. Did the Ads Increase Conversion Rate? YES • Google +17.9% • Yahoo +32.1% • Live +11.7% 6
  • 7. Did the Ads Increase RPV? YES • Google +15.4% • Yahoo +47.0% • Live +27.5% 7
  • 8. New Questions • Right Time? Marketing to Intent? • Power of Persuasion? • Power of Brand in Search? 8
  • 9. Test 2: What is the Best Ad to Increase Conversion? Ad Testing Element 1 Multivariate Testing Works Element 2 Increase Conversion Rates Element 3 ottodigital.com/ads Element 4 4x3 L9 Orthogonal Array 4 Elements 3 Variations 9
  • 10. Test Design • 9 Ads Created and Tagged w/ URL Parameter • Landing and Thank You Page Tagged • Ad Serving Optimization Turned OFF 10
  • 11. What does an L9 Array Really Look Like? Recipe (9) Title (3) D1 (3) D2 (3) URL (3) A - Control {keyword} Search {AdGroup} Compare Products www.brand.com suppliers Today B {keyword} Find {keyword} suppliers Search Thousands of www.brand.com/ Products {keyword} C {keyword} Find Parts fast at (brand) {keyword} catalog www.brand.com/ search catalogs D {keyword} suppliers Search {AdGroup} Compare Products www.brand.com/ suppliers Today catalogs E {keyword} suppliers Find {keyword} suppliers Search Thousands of www.brand.com Products F {keyword} suppliers Find Parts fast at (brand) {keyword} catalog www.brand.com/ search {keyword} G {keyword} catalog Search {AdGroup} Compare Products www.brand.com/ suppliers Today {keyword} H {keyword} catalog Find {keyword} suppliers Search Thousands of www.brand.com/ Products catalogs I {keyword} catalog Find Parts fast at (brand) {keyword} catalog www.brand.com search 11
  • 12. What Were the Results? Recipe Visitors Conversion Lift A - Control 11.80% 5.88% --- B 14.30% 4.29% -27.05% C 14.04% 6.08% 3.42% D 9.34% 2.57% -56.29% E 13.00% 6.16% 4.72% F 9.42% 5.38% -8.50% G 10.06% 5.04% -14.32% H 10.41% 5.13% -12.82% I 7.63% 8.04% 36.71% 12
  • 13. What is the breakdown? • Other Ads the Used Winning URL – Control – +4.72% • Other Ads the Used Winning D1 – +3.42% – -8.5% • Other Ads the Used Winning Title – -14% – -12% 13
  • 14. What Ad Elements Influenced Conversion? Element Winning Alternative Influence on Conversion Title {keyword} suppliers 13.54% D1 Find {keyword} suppliers 53.53% D2 Search Thousands of Products 23.56% URL 9.37% www.brand.com/{keyword} 14
  • 15. What’s Better? Winning Recipe Best Predicted {keyword} catalog {keyword} suppliers Find parts fast at (brand) Find {keyword} suppliers {keyword} catalog search Search Thousands of Products www.brand.com www.brand.com/{keyword} 15
  • 16. What’s Better? Winning Recipe Best Predicted {keyword} catalog {keyword} suppliers Find parts fast at (brand) Find {keyword} suppliers {keyword} catalog search Search Thousands of Products www.brand.com www.brand.com/{keyword} Best Predicted +52% Lift in Conversion Rate 15
  • 17. Test 3: What are the effects of Quality Score? 16
  • 18. Who & What Determines Relevance? Recipe A-C Title: “{keyword}” Recipe Impressions Conversion Rate Recipe A 265,909 5.72% Recipe B 265,045 5.09% Recipe C 264,784 5.49% 17
  • 19. Who & What Determines Relevance? Recipe D-F Title: “ Find {keyword}” Recipe Impressions Conversion Rate Recipe D 47,093 8.59% Recipe E 47,289 5.24% Recipe F 47,066 7.76% 18
  • 20. Who & What Determines Relevance? Recipe G-I Title: “The Wait is Over” Recipe Impressions Conversion Rate Recipe G 46,518 9.84% Recipe H 46,795 8.11% Recipe I 46,579 11.76% 19
  • 21. Who Decides Relevance? Group G-I had • 17% of the Impressions of A-C • 32% of the Conversions of A-C • 82% higher Conversion Rate than A-C 20
  • 22. Jonathan Mendez, Chief Strategy Officer Thanks! • optimizeandprophesize.com - My Blog • ottodigital.com/blog - OTTO Blog • offermatica.com - Technology & Parent 21
  • 23. Jonathan Mendez, Chief Strategy Officer Thanks! • optimizeandprophesize.com - My Blog • ottodigital.com/blog - OTTO Blog • offermatica.com - Technology & Parent 21