Paid social and A/B testing

Marketing Analytics in Tableau

Maarten Van den Broeck

Senior Content Developer at DataCamp

Paid social marketing: value

Paid social marketing: paying a social media company money to run ads for your business

  • Significant value: easy audience segmentation and targeting
  • More likely to reach individuals who are more likely to buy

AloYogaExample.png

Marketing Analytics in Tableau

Paid social marketing: costs

Most paid social advertising is billed in one of two ways:

  1. CPC (Cost Per Click): the company pays a specific rate every time the ad is clicked
  2. CPM (Cost Per thousand (M) Impressions): the company pays a specific rate for ever thousand individuals who see the ad

Costs vary by industry and different target demographics like location

  • Average CPC is between 0.50 - 1.00 USD
  • Competitive CPCs can be as high as 5 USD

Billing methodology varies based on target goals

1 https://www.k6agency.com/instagram-ads-cost/
Marketing Analytics in Tableau

A/B testing: creatives

A/B testing: allows for real-time experimentation between two options to generate data for future decisions

AB Testing Schematic.png

Marketing Analytics in Tableau

A/B testing: creatives

AB Testing options.png

With enough data...

  • Performance comparison: align performance metric to marketing goal
  • Marketing analysts review A/B test results using statistical techniques
  • Some companies run thousands of A/B tests annually
Marketing Analytics in Tableau

A/B testing: all ad components

Creative: image or graphic in an ad

Creative AB Test.png

Call-to-action (CTA): prompts a response

CTA AB Test.png

Aesthetics: fonts, design, and color choices

Aesthetics AB Test.png

Pricing: optimizing price and quantity

Price AB Test.png

Marketing Analytics in Tableau

Let's practice!

Marketing Analytics in Tableau

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