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Evaluating and Optimizing Online Advertising: Forget the Click, but There Are Good Proxies
Brian Dalessandro1, Rod Hook1, Claudia Perlich1
11 Dstillery , New York, New York.
Big Data
|July 23, 2016
Summary
Online advertising often lacks purchase data. This study shows website visits, not ad clicks, are effective proxies for evaluating and optimizing ad campaigns, improving targeting accuracy.
Area of Science:
- Digital Marketing
- Data Science
- Advertising Analytics
Background:
- Online advertising relies on data for targeting and optimization.
- Accurate campaign evaluation is hindered by sparse data on key outcomes like purchases.
- Challenges include low conversion rates, cold starts, and offline purchase tracking.
Purpose of the Study:
- To introduce and evaluate proxy modeling for online advertising.
- To assess the effectiveness of different proxy variables for campaign evaluation and optimization.
- To demonstrate the potential of proxy modeling using large-scale real-world data.
Main Methods:
- Proxy modeling approach using alternative target variables.
- Large-scale experiment across 58 online advertising campaigns.
- Comparative analysis of different proxy metrics, including ad clicks and website visits.
Main Results:
- Ad clicks are poor proxies for purchase behavior and campaign optimization.
- Website visits serve as a strong and reliable proxy for predicting purchases.
- Models based on website visits accurately predict consumer purchasing behavior.
Conclusions:
- Relying on ad clicks for campaign evaluation is ineffective.
- Utilizing website visits as a proxy offers a practical and effective alternative.
- Proxy modeling with well-chosen variables enhances online advertising strategies.
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