Google Adwords // SMB Channel Partner Video Case Study

This video features insights from Don Luke, President at Bill Luke, Luke Stokebrand, Director of Marketing at Bill Luke, and Collin Yanez, Supervisor at Haystak Digital regarding digital strategy and how dealers can use AdWords to market and sell vehicles.

A/B Testing (Split Testing), Is It BS? One-Tailed vs Two-Tailed Testing

Most marketers and web developers are familiar with the A/B Testing: The testing of 2 different versions of an object or a web page to see which one performs better. In theory, this is an excellent practice and should be performed to get the best performing website or campaign possible. However, this is often without a cost, especially if you are working with a web optimization firm. The question is not whether A/B testing can be effective, but in reality is it fiscally responsible and ultimately necessary. 

Sample A out performed Sample B by 20%! Is my data actionable?

There are 2 ways to determine that you tests are statistically valid: One-Tailed Test or Two-Tailed Test. Peter Borgen, a contributor at SumAll, eloquently describes the difference between the 2 test on his blog:

"The short answer is that with a two-tailed test, you are testing for the possibility of an effect in two directions, both the positive and the negative. One-tailed tests, meanwhile, allow for the possibility of an effect in only one direction, while not accounting for an impact in the opposite direction."

One-tailed requires a smaller sample size, is more convenient, and will likely yield a result that appears conclusive. They will tell you that sample A is better that sample B, but it will not tell you if it is doing worse. Two-tailed requires a large sample size, may take longer, and may be more expensive to conduct. However, it will produce results that are truly actionable.

More on One-Tailed Tests and Two-Tailed Tests:

One-tailed tests are not always bad, it is just important to understand their downside. In fact, there are many times when it makes sense to use an one-tailed test to validate your data. Personally, if you paying for website optimization or it is a major decision, I would need to have Two-tailed validation. Chris Stucchio has a great summary of when it's "ok" to use one-tailed testing here.

If you're paying for a service, you deserve actionable results.

Again, the challenge of A/B Testing is to get an result from the test that is statistically significant. I have never been told what form of testing (nor have I asked), was used to evaluate my data. If you move forward with an optimization firm ask them:

  • What type of evaluation are they using? One-Tailed or Two-Tailed Test
  • What is the sample size?
  • What is their confidence interval?
  • Are the results statistically significant enough that I can make a decision with them?

Ultimately, I want to know that A/B Testing in effect increase my user acquisition and not just tell me what I want to hear. I work for a smaller firm with limited resources, and I do not want to waste them bogus results. If something is too good to be true, it probably is. Spend the time researching and finding a firm that will delivery the result you need, because as the end of the day - if you show your boss a presentation that will increase user acquisition by 20%, and months later the results are not there: the only loser is going to be you.

Have no data is better than bad data. Doing testing in house and using your experience, logic, and free online tools can help you improve your performance without spending a dime. Run test frequently, and for long periods of time, and run calculations to see if you data is significant.

If you are new to A/B Testing and how it works, these resource are a great places to start:

To learn more about A/B Testing Statistics, One-Tailed Test, and Two-Tailed Tests use the following links:

Here is a tool for testing statistical significant from your own tests:

 

 

Digital Ad Terminology - DSP, SSP, Ad Networks, Ad Exchanges, AdWords .... WTH

Ad buying sounds complicated, but it really isn't that bad. The following platforms are here to help you once you know what they are and what their role is.

Demand Side Platforms (DSP)

DSPs allow advertisers to buy display ads across multiple ad exchanges through one interface. They also allow you to buy particular audience segments rather than specific website ad buys via real time bidding (RTB). DSPs use behavioral targeting data, collected from cookies (such as DoubleClick) and data exchanges, to identify audience segments. Once you define what kind of person you want to target, you define how much your are willing to pay per impression and the DSP will bid on ads that meet your criteria and serve your ads.

DSPs: DoubleClick Bid Manager, MediaMathSiteScout

Supply Side Platforms (SSP)

SSPs allow publishers to sell display ads across multiple ad exchanges, DSPs, and advertisers through one interface. Often utilizing RTB, SSPs can maximize the value for each individual ad spot for the publisher. They are able to sell their impressions to the highest bidder, and access thousands of new advertisers that would likely not ever buy from the publisher directly.

SSPs: DoubleClick Ad Exchange, PubMatic, Rubicon Project 

Ad Exchange

Ad Exchanges provide a way for advertisers to run ad campaigns across multiple sites efficiently. Exchanges are automated platforms that facilitate transactions, kind of like a stock exchange, and are often used to move remnant and often low value inventory. 

Ad Exchanges: Yahoo Ad Exchange

Ad Network

Ad networks help advertisers who are trying to collect inventory from numerous websites and publishers by presenting a large collection of inventory so marketers can buy those impressions. In other words they collect inventory from many publishers and then mark it up and sell it.

The difference between an Network and an Exchange is that a Network is like a closed group of privately traded ads, an exchange could be compared to an open network where advertisers can see all of the impressions available. To better summarize - an Exchange can be seen as offering variety, while a Networks offers specialized groups of ads that meet the advertiser's needs.

Ad Networks: iAd Platform, AdMob

Google AdWords

Google AdWords is Google's online advertising program that lets you reach new customers and grow your business. AdWords can be split into 3 major pieces: Search, Display (GDN), and Video. Search allows advertisers to create ads that will run on targeted search on Google. Google Display Network (GDN) is an Ad Network that can only serve ads on Google's massive network of participating sites. Ads can be targeted contextually, by placement, topic, interest, or even by keyword, but only to sites within the GDN.