Doubling the conversion rate
Channel Analysis & Mix Modelling
Process automation for a company
Determining which channels led to conversions is an essential marketing question. Attribution models present different approaches towards evaluating to which extent different channels contributed towards a conversion. The obtained information can be used to optimize the media mix and significantly raise the conversion rate.
- Business sector: Gambling Industry
- Project goal: improving conversion rate and ROAS
- Duration: 6 months
The client faced a difficult situation as he shared around 80% of the market with one major competitor. The market was saturated and declining which caused decreasing revenues, lower profits, and higher advertisement spending for the company. The task was to determine where advertisement cost could be reduced while maintaining revenues and thereby increasing the return on investment.
We started by analysing the channels and the conversion funnel. We discovered that the conversion rate was at only 20% of the cross-industry-average which was the starting point of the analysis. Low conversion rates can be caused by multiple issues including website structure and traffic quality. Attribution modelling was performed to detect which channels were working better than others.
The analysis showed no single issue causing the low conversion rate, but multiple issues with the website and the campaigns. By performing mix modelling, we discovered that different publishers performed poorly in comparison to their attributed budget. Based on the analysis we created a new media mix reducing spends on non-performing campaigns and shifting budgets between channels. The conversion rate and the return on advertising spend could both be doubled while the cost-per-action was cut in half.