Rocket Fuel:
Measuring the
Effectiveness of
Online Advertising
Group 3:
Anjali Neupane
Binita Pandey
Divya Teja Cholleti
Kusum Sharma
Rishitha Gadiparthi
Vishal Kumar Kalava

Agenda
Article Introduction
Was the advertising
Campaign Effective? Did
Additional consumers
convert as a result of the
ad campaign?
Was the campaign
profitable?
How did the number of
impressions seen by each
user influence the
effectiveness of
advertising?
How does consumer
response to advertising
vary on different days of
the week and at different
times of the day?
Conclusions

Introduction
• Rocket Fuel Inc. was founded in March 2008 by alumni of Yahoo.
• Vision of transforming the digital advertising industry through big data and
artificial intelligence.
• Became the industry leader by using the accuracy and certainty of science in
the field of marketing to increase ROI.
• Rocket Fuel has grown into a business with nearly half a billion dollars in
annual revenue.
• Marketing Platform is designed to leverage artificial intelligence (AI)
• The platform continuously modifies the properties of its underlying model
using machine learning (ML) approaches to increase campaign efficacy in real-
time.

Was the advertising Campaign Effective?
Control
(Not Exposed to
Add)
Experimental
(Exposed to
Add)
Total
Did not Convert 23104 550154 573258
Converted 420 14423 14843
Total 23524 564577 588101
Total Customers
Total Customers
Converted
Total Customers Not
Converted
Control Group (0)
(Not Exposed to Add)
23,524 420 23,104
Test Group (1)
(Exposed to Add)
564,577 14,423 550,154
Total 588,101 14,843 573,258
Test Group (1)
(Exposed to Add)
Total 5,64,577
Converts 14,423
Percentage of converts 2.55465%
Control Group (0)
(Not Exposed to Add)
Total 23,524
Converts 420
Percentage of converts 1.78541%
Yes, the advertising effort was effective in terms of conversion. As a consequences of the advertising effort,
about 0.769% (2.555-1.785=0.769245) of customers purchased the handbag.

Was the campaign profitable?
• The campaign was profitable. Running the campaign allowed
TaskaBella to generate $173,719 in revenue. To understand how
significant indicators affect campaigns, we took into account Lift
analysis.
Lift Conversion Rate = % converted among exposed in experimental - %
converted among exposed in Control
Incremental value from ads = Worth of converted user x No of exposed
users x lift Conversion Rate.
Worth of converting new user = $40
Number of exposed users = 564,577
Conversion Rate Lift = 0.769245%
i.e., Profit = $40 x 564,577 x 0.769245% = $173,719.21

Was the campaign profitable?
Cost of the
campaign
ROI of the
campaign
= (Profit / 1000) * Avg CPM cost = (14,597,182 / 1000) * $9= $131,374.64
= (Net Profit / Cost) * 100 = ($173,719.21 - $131,374.64 / $131,374.64) * 100 = 32.231%
The numbers shown above show that the campaign was successful in increasing conversion
rates and increasing TaskaBella earnings. With a good ROI, we may infer that the campaign was
successful.

Was the
campaign
profitable?
Opportunity Cost = (Conversion Rate of exposed
users – Conversion rate of control users ) * Number
of users in control group * Value of converted user.
= 0.769245% * 23,524 * $40
= $ 7238.29

The effectiveness of advertising based on number of
impressions
For Test group , 73.80% impressions are present
between the 1-100 ad impression range
For Control group, 71% impressions are present
between the 1-100 ad impression range
For Test group, the conversion rate is 2.55%
For Control group, the conversion rate is 1.79%
For both groups, after the impression ad of 1-100,
there was no significant difference in conversion.

Conversion rate in the group exposed to the
real ad is more (2.55%) when compared to
the control group (1.78%)
Overall increasing trend in the conversion
rate for both groups.
Highest conversion rate of 100% for Test
group in the 1701-1800 impressions range
and 17.5% for the control group in the range
201-300.
Real ad design can be chosen for next
campaign
Focus on bringing more number of people
into the total impression brackets with high
conversion rate.

How does consumer
response to advertising vary
on different days of the week
and at different times of the
day?
We can infer from this
chart that advertising is
effective all days of the
week. But it seems that
advertising is
• More effective on
Monday
• Less effective on
Saturday
Conversion rate for Control & Exposed group as a function of day of the week.
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
Mon Tues Wed Thurs Fri Sat Sun
Control
Exposed

While the conversion rate in the
exposed group somewhat curves, it
fluctuates in the control group.
The conversion rate for the exposed
group is highest on Monday,
progressively decreases over the rest
of the week, and marginally rises on
Sunday.
Customers in the exposed and control
groups responded inconsistently, with
the exception of converting at higher
rates on Monday and at lower rates on
Saturday.
Conversion rate for Control & Exposed group as a function of day of the week.
3.32
3.04
2.54
2.16
2.25
2.13
2.46
2.26
1.44
1.58
2.02
1.63
1.40
2.06
1 2 3 4 5 6 7
Conversion
Rate
in
%
Day of the week
Conversion rate Control Group Vs Exposed Group
Exposed Control

Conversion rate by the hour of the day
• Beside bar graph shows the comparison of
the conversion rate between the Control
Group and the Exposed Group.
• The conversion rate in the Exposed group
gradually increased during the period from 8
am and 4 pm and later dropped constantly
except for a rise at 8 pm.
• Highest Conversion rate in the Exposed
group is at 4 pm.
• Lowest conversion rate is at 9 am in the
exposed group.
Conversion rate by the hour for Control & Exposed groups.

Conversion rate by the hour of the day
• With regards to the conversion
rate in the Control group it started
from 1.06% at 8 am and gradually
increased till 12 pm and later
slight decrease until 2 pm.
• There is a steep increase from 2
pm until 4 pm and later gradual
fluctuations with a decline in
rates.
• Highest Conversion rate in the
Control group is at 4 pm which is
the same as the Exposed group.
• Lowest conversion rate is at 8 am
in the Control group.
1.99 1.95
2.18 2.25
2.41
2.51
2.86
2.98
3.09
2.85
2.75 2.68
3.03
2.92
2.65
2.30
1.06 1.08
1.35
1.46
1.70 1.66 1.61
2.52
2.81
2.02
2.52 2.45
1.76
2.22
1.64
1.29
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Conversion
Rate
in
%
Hour of Day
Conversion rate by hour: Control vs Exposed Groups
Exposed Control

The end
Questions?