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.