Assignment:
Case Discussion Questions
1. Was the advertising campaign effective? Did additional consumers convert as a result of the ad campaign?
2. Was the campaign profitable?
a. How much more money did TaskaBella make by running the campaign (excluding advertising costs)?
b. What was the cost of the campaign?
c. Calculate the ROI of the campaign. Was the campaign profitable?
d. What was the opportunity cost of including a control group; how much more could have TaskaBella made with a smaller control group or not having a control group at all?
3. How did the number of impressions seen by each user influence the effectiveness of advertising?
a. Create a chart of conversion rates as a function of the number of ads displayed to users. Plot conversion rates for those who were in the control group and for those who were exposed to the ad. Group together number of impressions as necessary to obtain a meaningful plot. (Conversion rate means the percentage of unique users who made a purchase.)
b. What can you infer from the charts? In what region is advertising most effective?
c. What do the above figures imply for the design of the next campaign assuming that consumer response would be similar?
4. How does consumer response to advertising vary on different days of the week and at different times of the day?
a. Create a chart with the conversion rates for the control group and the exposed group as a function of the day of week when they were shown the most impressions.
b. Create the same chart for hours within a day (excluding the period between midnight and 8 a.m.).
c. What days/hours is advertising most/least effective?
Your case analysis should address the following questions:
• What problem exists and why?
• What additional information, if any, is needed to analyze this case adequately?
• What are the possible solutions to the problem?
• What are the consequences of each possible solution?
• What decision should be made or what solution should be chosen? And what is the rationale for it?
• What general ideas can be drawn from this case that might have application elsewhere?
Your case analysis should be formatted as follows:
• Papers should not exceed 3 pages. (3 page limit is excluding the cover and reference sections)
• Use the APA style for formatting guidelines.
• If you are citing a source or quoting other people's work, be sure to properly reference your source using the APA style.
• Effective writing helps clarify ideas and communicate those ideas to others. Be organized. clear, and succinct. Grammar, punctuation style, and spelling count. Write in American English that is appropriate to the business community.
Readings:
Rocket Fuel: Measuring the Effectivness of Online Advertising
By Zsolt Katona and Brain Bell