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This might be a dumb question, but how did they know that marketing expenses drove more orders (rather than just eating into their margins)?
by shishy 7y ago
This might be a dumb question, but how did they know that marketing expenses drove more orders (rather than just eating into their margins)?
- chwolfe 7y agoGood question! Combination of holdout groups (split testing) based on historical keyword traffic/conversion and tagging paid and natural search entries to compare cannibalization across campaigns.
- nikisweeting 7y agoGood data-driven marketing teams work hard to establish control groups and known baselines before starting high-spend campaigns, and the ROI of those can be quantified by referrer info if they're highly specific and keyword-related. As for more general campaigns, in my experience, it's a crapshoot, if the numbers go up everyone is happy whether or not marketing was responsible for the majority of it. I'm sure other companies have better approaches than that though.