Multivariate Ad Testing for Ad Quality

Case Study

using multivariate testing to improve ad performance

The Challenge

A B2C client with a well-equipped creative department and full-funnel marketing strategy across all major social media platforms is interested in taking their creative to the next step, but feels like they lack direction. They’ve historically deployed AB tests for ads, but have found that to be difficult to manage with the number of creative in play and concurrent tests and they’re unsure how to incrementally improve on performance over time especially when AB tests give conflicting results or are impacted by confounding variables such as seasonality, platform, or audience.

the Approach

I recommended a multivariate testing strategy for several reasons that were specific to their business and marketing campaign setup.

What is multivariate creative analysis? While AB tests is used to test the impact of changing a single variable using versions A & B, multivariate testing changes several variables simultaneously to test the impact of each individually and the relationship between different combinations.

Example: Let’s say you’re interested in testing 3 variables in your ad:

  1. Selling Point: Which selling point is most effective for your audience?
  2. Ad Image Components: Does including a person in the ad image lead to improved creative?
  3. Copy Length: Does using longer copy providing users with more information or content at the point of impression improve engagement?

If you were using an AB model, you would need one Control Ad (A) and test that against an ad with a different selling point (Ad B), then test the winner against an ad with a different ad image components (Ad C) and so forth. However, there are several things that you are not learning by choosing an AB approach over a multivariate approach, namely: how these variables interact with each other. You may find B to the best performing ad, but does it perform better or worse

    1. The multivariate approach allows for multiple variables to tested simultaneously so that you get data on more variables faster.
    2. It gives insight into how these variables interact with one another which can help discover synergies between a specific combination of variables.
    3. By testing several variables concurrently, you reduce the possibility for time or seasonality to be a confounding variable that influences subsequent testing. The performance of some variables may be more (or less) important during some points in your seasonality.
    4. It gives more time between testing periods. Multivariate tests require more time for data collection due to the data being split among a greater variety of ads. Because of this, it leads to less strain on designers and strategists by front-loading the development of new creative and not requiring constant iteration within a campaign.

    Key Findings

    By deploying a multivariate approach, the client was able to test the following attributes against each other:

    • Brand Themes and Product Selling Points, such as price, quality, prestige, and consistency.
    • Ad Formats, such as animated video/gif ads vs static imagery
      • There was also a test within the video variations on video length. Was engagement better or worse depending on whether the video was 6 seconds, 15 seconds, 30 seconds, or 2 minutes?
    • Copy Length, i.e. short ad copy that only contains text before clickable “read more” or long copy that had far more context on the ad post itself without requiring users to click.

    The client was able to generate insights on all of these variables including which variables largely didn’t matter based on the available. In 3 months, the client had actionable insights on all of these variables and how they influence each other when it would have taken a full year of AB testing to get similar insights. Here are some of the high level findings:

    1. Video length had little to no impact on CTR.
    2. Copy Length had a positive correlation, with the longer copy variants performing 13% better than not.
    3. Video ads performed substantially better than static image ads in most placements.
    4. Selling points within the price and quality themes outperformed prestige and consistency.

    On top of these high level insights, there were also more detailed insights related to the dynamics between these variables. For example, the prestige ads that highlighted brand reputation history were generally among the worst performers, but not when that ad was (a) a video (b) over 30 seconds in length. The message prestige ads were trying to communicate didn’t resonate in shorter or static placements, likely due to the fact that those placements lacked the information capacity required to convey such a nuanced idea.

    Similarly, while quality was determined to be one of the better performing selling points, it performed better with longer copy variants, especially. Users that were interested in quality were interested enough to read beyond the “read more” buttons to learn more about the product.

    Data-Driven Geographic Targeting Unlocks Growth in Underserved Markets

    Case Study

    Maximizing Market Coverage: How Data-Driven Targeting Unlocked 28% Growth in Underserved Markets

    The Challenge

    A statewide higher education organization in Indiana partnered with us to generate leads for their educational institutions. While the campaign successfully delivered cost-effective leads, stakeholders identified a critical issue: low program utilization in suburban and rural communities. This highlighted the need to balance lead generation efficiency with geographic equity across Indiana’s 92 counties.

    Our Approach

    To address this complex challenge, we developed a comprehensive strategy that combined market analysis with advanced campaign optimization:

    market analysis Framework
    • Population demographics
    • Education rates
    • Age distribution
    • Regional economic indicators
    Performance Metrics Development
    • Per capita advertising spend by county
    • Organic interest rates per capita
    • Market saturation indices
    • Geographic

    By analyzing these metrics in tandem, we saw clear correlations in the parts of the market that our client had a vested interest in reaching, i.e. geographic areas with lower educational attainment, worse outcomes according to economic indicators and aging populations that would need to be replaced in the workforce, and the parts of the market that our digital-first campaigns were optimizing away from based on lower conversion rates and – by extension – higher CPAs.

    Strategic Implementation

    To address these imbalances, we implemented a three-tier solution:

    1. Value-Based Optimization

    • Developed custom conversion value rules in Google Ads
    • Assigned higher conversion values to underserved areas
    • Created a balanced scoring system that weighted both lead cost and geographic diversity

    2. Geographic Bid Adjustments

    • Implemented location-specific bid adjustments
    • Relaxed CPA targets in underserved regions
    • Optimized budget distribution based on market opportunity

    3. Custom Campaign Development

    • Created dedicated campaigns for the bottom 10% of underserved counties
    • Developed customized user journeys based on regional needs
    • Implemented specialized messaging and targeting strategies

    Results

    Our strategic adjustments delivered impressive outcomes while maintaining campaign efficiency:

    • 28% YoY increase in leads from underserved communities
    • Maintained overall lead volume and cost efficiency
    • Improved advisor utilization rates in rural branches
    • Prevented potential branch closures due to perceived low demand
    • Established sustainable geographic distribution of educational opportunities

    Key Takeaways

    This project demonstrated that digital campaigns can simultaneously achieve:

    • Cost efficiency and geographic equity
    • Scale and community-level customization
    • Performance optimization and social impact

    The success relied on:

    1. Deep data analysis beyond surface-level metrics
    2. Custom optimization frameworks
    3. Strategic balance of multiple competing objectives
    4. Understanding of local market dynamics

    Looking to optimize your digital campaigns for both performance and equity? Let’s discuss how we can apply these strategies to your unique challenges.

    Auditing a B2B Insurance Client

    Case Study

    Uncovering Performance Issues in B2B Insurance PPC Campaigns

    The Challenge

    A B2B insurance provider approached us with concerns about their Google Ads account management. Despite receiving regular reports showing acceptable top-line metrics, they suspected inefficiencies in their ad spend and questioned the depth of optimizations being performed by their existing agency.

    the Approach

    I conducted a comprehensive audit of their paid search account, focusing on three key areas:

    1. Strategic KPI and metrics analysis
    2. Detailed in-platform performance evaluation
    3. Quality assessment of agency communication and reporting

    Through our investigation, we developed proprietary metrics and analytics frameworks to expose hidden performance patterns that standard reporting had missed.

    Key Findings

    Our advanced analysis revealed critical insights that transformed the client’s understanding of their campaign performance:

    • Inactive Keywords: Over 80% of keywords in the account showed zero spend, indicating significant waste in account structure and management time
    • Poor Performance Distribution: 15% of keywords were operating at a negative return (ROAS < 1)
    • Over-reliance on Brand Terms: Just 5% of keywords – all branded – were driving positive performance, artificially inflating overall account metrics
    • Superficial Optimization: Agency reporting relied heavily on vague “optimization” claims without specific actions or predicted outcomes

    Results & Impact

    My audit and subsequent recommendations enabled the client to:

    • Identify significant opportunities for spend optimization
    • Develop stronger agency oversight protocols
    • Create a framework for measuring true campaign value
    • Establish clearer performance expectations and accountability measures

    Key Takeaways

    This engagement highlighted the critical importance of looking beyond surface-level metrics in paid search management. True campaign success requires:

    • Detailed performance analysis at the keyword level
    • Clear articulation of optimization strategies and expected outcomes
    • Regular validation of agency activities and their impact
    • Structured approach to agency communication and accountability

    Ready to uncover hidden opportunities in your paid search campaigns? Contact us to learn how our advanced audit methodology can transform your digital marketing performance.

    Troubleshooting Campaigns with the Leaky Pipe Analogy

    tips and tricks

    troubleshooting campaigns with the leaky pipe

    thesis

    By deploying a leaky funnel analysis when troubleshooting campaign performance, you can ensure you – or your paid digital executors – are focusing efforts to find the cause of problems and delivering specific actionable solutions.

    focusing analysis by visualizing the pipe

    In this context, the pipe is a synonym for the user journey. It is the journey that a user takes from the time they click on your link to the conversion event that is your primary objective.

    What’s important to understand about this pipeline is that different metrics are available to be optimized at different stages: metrics that are earlier in the pipeline typically influence those that are later in the pipeline. For example, a key metric that is often optimized towards as a business objective is Cost per Acquisition (CPA). CPA going up may be a cause of concern, but rising CPAs never implicates a specific action or set of actions because CPA has several inputs that can be influential. This can be illustrated by the different ways in which CPA can be calculated.

    Total Spend / Total Conversions = Cost Per Acquisition/Conversion

    This is the main way that CPA is calculated, but this method gives the least information about its other inputs. It cannot be used to triage campaign performance.

    Cost Per Click (CPC) * Clicks * Conversion Rate (CVR) = Cost Per Acquisition

    This is another way to calculate CPA and is far more useful for identifying potential causes of campaign performance fluctuations. Performing analysis with this model allows us to see which metrics are causing performance shifts.

    Within this, we can see how leading variables like CPC and Conversion Rate influence the lagging variable which is CPA in this case.

    • If the CPC goes up, then CPA will go up even if your conversion rate stays the same.
    • Similarly, if your conversion rate goes down, your CPA will go up even if your CPC remains the same.

    This may seem trivial or simplistic, but it is crucially important to methodically troubleshooting performance. An executor that doesn’t break lagging metrics down into the leading metrics that influence them may not have an understanding of these how these metrics relate to one another and which they have control over. After all, we can’t just “make the ROAS go up,” we have to make tweaks that positively influence ROAS, which is where the leading metrics come into play.

    Following are some examples of action items that I would consider depending on which variable moved and how it moved.

    If CPC changes
    • Pull reports on auction insights to determine if competitors could be driving up auction costs.
    • Pull a search term analysis to see if search terms skewed towards higher/lower cost queries
    • Pull demographics reports to see if gender, income, or age demographics may have changed period over period. (different demographics have different average costs)
    • Troubleshoot ad quality & ad relevance, which may impact what CPCs search engines allow you to pay. Consider revising:
      • Ad Copy
      • Landing Pages
    if CVR changes
    • analyze landing page metrics that affect the user experience and thus conversion rates
      • Bounce Rate (which is a lagging indicator in a different sense)
      • Load Speeds
      • Layout changes
    • Pull page paths and behavioral reports. Perhaps users are engaged but they’re exiting your conversion path in search of more or specific information.
    • Pull demographics reports to see if gender, income, or age demographics may have changed period over period. (Different demographics may engage or convert differently.)
    • Consider AB testing landing pages to determine if landing page qualities could improve CVR.

    As you can see, the metrics to look into and fix are fairly different. The fact that the action items are so different is exactly what exemplifies the need for an analytical method that points executors in the proper direction for isolating problems and finding opportunity.

    Actionable takeaways

    1. When tracking changes in campaign performance, don’t focus on KPIs like CPA, ROI/ROAS, etc. Focus on the leading metrics that influence the down funnel metrics that determine performance.
    2. Develop hypothesis that drive testing strategy. Don’t just pull every lever at once. Develop a set strategy for achieving the end objective and test different tactics in sequence.

    Boosting Conversion Rates by 16% through the power of CRO

    Case Study

    Boosting Conversion Rates by 16% through the power of CRO

    The Gist

    • To expand the reach of a prominent career training institution with 16 campuses nationwide without overburdening the internal marketing team.
    • The project was led by the narrator, implementing Conversion Rate Optimization (CRO) tests to improve the overwhelming inquiry form design and achieving a 15.5% increase in Request For Information (RFI) conversions.
    • The successful CRO project not only covered its cost but also provided a competitive edge, proving the value of collaborations with specialized agencies in higher education.

    Background

    My primary objective was to expand our reach to a larger student base without overwhelming our marketing department’s resources. As a leader in the career training institution sector, we operate 16 campuses nationwide. We recognized the need to establish connections with more prospective students and suspected that our website design wasn’t effectively engaging today’s higher education seekers. Given the limitations of our internal marketing team in both capacity and Conversion Rate Optimization (CRO) expertise, making changes without diverting attention from ongoing high-priority projects was challenging.

    Execution

    I took the initiative to lead the CRO project, enabling our career college to maintain its focus on departmental priorities. Leveraging my higher education-specific conversion data and proven ideas, I designed and executed CRO tests with my team. We functioned as an extension of our marketing department, allowing us to swiftly implement strategic, data-driven tests on our school’s inquiry form without increasing our internal teams’ responsibilities.

    One crucial aspect of the inquiry form test was the use of heatmapping tools to monitor prospective student behavior on the form, pinpointing where they abandoned it. To our surprise, we discovered that users were leaving the site before even beginning to share their information due to the overwhelming form design. Backed by our industry research, I decided to revamp the form.

    The learnings we gained from this process were then put to the test as we designed and implemented a new form, comparing its performance against the original. I was thrilled to see that form abandonment was drastically reduced, resulting in a remarkable 15.5% increase in Request For Information (RFI) conversions.

    The results of the CRO project were truly impressive. The financial impact of the additional student inquiries more than paid for the entire year of CRO services, all while sparing our marketing department from added responsibilities. Beyond the cost and time savings, I gained the peace of mind of knowing that we were no longer leaving potential students behind and had a user experience innovative enough to give us a competitive edge against other institutions.

    Takeaway

    In the realm of higher education, I recognized the potential for increasing student inquiries and took charge of the project. In collaboration with a specialized agency, I was able to offer my client access to proven data and strategies without overburdening our resources. The results we achieved, as mentioned earlier, were substantial, significantly improving our lead generation efforts on flat spend with no additional investments.

    Persona geotargeting to improve lead-gen campaign

    Case Study

    Persona geotargeting to improve lead-gen campaigns

    The Gist

    • Achieved over 4,200 program leads and nearly 500 applicants in the first year, setting all-time records for online programs.
    • Implemented targeted marketing focused on key national locations and persona-based messaging, resulting in significantly improved lead quality.
    • Achieved a remarkable 2X growth in the lead-to-applicant rate for online offerings compared to the previous year.
    • Successfully reduced the cost-per-lead by 44% and cost-per-enrollment by nearly 28% over the same time period.

    Background

    A for-profit university decided to elevate its online offerings into a distinct brand. However, this endeavor presented a unique challenge due to the fiercely competitive nature of the online education industry, necessitating a calculated approach to marketing within budgetary constraints. This case study delves into the detailed strategies and tactics employed to address this challenge successfully.

    Execution

    To maximize our budget, I began by examining the nationwide performance of the client’s online programs. I delved into years of inquiry, application, and enrollment data for each online program, mapping out the top-performing states and zip codes. This analysis revealed the best-performing areas in terms of volume, conversion efficiency, student retention, and revenue, all the way down to specific zip codes. This information was then organized into bulk sheets, enabling me to efficiently set up campaign targeting for our Paid Advertising efforts.

    I selected paid search, display remarketing, and Facebook lead-gen ads due to their zip code-level targeting capabilities and precise audience reach. Given our budget constraints, competing on a national scale across broad concepts was not viable. Instead, I focused on priority programs and developed personas based on historical enrollment data to identify the ideal student’s interests, demographics, and behaviors. These personas served as the foundation for creating custom affinity audiences for Google display campaigns and individual ad set audiences on Facebook.

    For paid search, my strategy centered on leveraging branded keywords, program-specific terms, competitor conquesting, and search remarketing in the highest-performing geographic areas. This approach allowed me to make the most of our budget and drive results effectively.

    Results

    This approach generated over 4,200 program leads and almost 500 applicants in the first year, marking all-time highs for the online programs. By concentrating on specific national locations and tailoring targeting and messaging based on personas, we significantly enhanced lead quality. The client experienced a 2X growth in the lead-to-applicant rate for their online offerings compared to the previous year. Additionally, we achieved a remarkable 44% reduction in cost-per-lead and a nearly 28% reduction in cost-per-enrollment over the same time frame.

    Takeaways

    • Leveraging 1st-Party data is important for setting campaigns up for success.
    • Segmenting your audience based on key demographics can help speak to each persona better.