THE PROBLEM
The ad campaign faced inefficiencies from a misallocated budget and underperforming states/URLs, hindering ROI. The goal was to pinpoint high-converting locations and optimize resource allocation.
The SOLUTION
We analyzed and cleaned the dataset to identify top-performing locations, devices, and URLs. Key metrics (conversions, clicks, impressions) and KPIs (CPC, CVR, CPA) were assessed. The solution involved reallocating funds from low-performing areas to high-converting states, focusing on mobile-friendly ads.
Key INSIGHTS
- $500K Savings Potential: By reallocating the budget from underperforming states (10 states) to high-converting ones (5 states), we identified a $500K opportunity.
- Top States for Conversions: Illinois, California, New York, Florida, and Tennessee outperformed low-converting states by a significant margin (7,600 vs. 800 conversions).
- Wasteful Spending on URLs: Certain URLs, yielding only 1-2 conversions with CPAs over $3,000, accounted for 8% of total expenses.
- Mobile Ads Priority: With smartphones driving strong engagement, prioritizing mobile-optimized ads can enhance results.
Recommendations
1. Reallocate Budget: Shift 18% of the budget to high-converting states, saving up to $500K.
2. Brand Awareness in Low-Converting States: Use states like Kentucky for brand awareness efforts, focusing on conversions in more promising areas.
3. Reduce Wasted Spending on URLs: Cut spend on URLs with high CPA and poor conversions.
4. Prioritize Mobile Ads: Increase investment in mobile-optimized ads for better engagement.