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How Advertising Data Science Can Double ROI

Updated: Jun 23, 2022

Data Science for advertising is like accounting. In both areas, you measure and identify exactly which parts of a business are – or aren’t – profitable. Advertising ROI improves dramatically by cutting out, "the fat."


Let's compare Traditional Advertisers to Data Science Advertisers:



Why does this matter? With data science, you can:


· Know which ads are working versus guessing by conversion rate.

· Run more experiments without uncertainty.

· Get faster insights.

· Get faster, more efficient results.

· Reduce spending while increasing corporate revenue.



Without exception, every client working with traditional advertisers wastes 60% of their spending – even including the most highly skilled marketers. In many cases, these advertisers fail to produce a positive ROI at all.


This waste of ad spend is largely due to traditional marketers assuming that clicks, conversions, and online interest translates to company revenue. Often times, a good conversion rate on a "good" keyword is assumed to work. We've found that's only the case about 50% of the time. Often, other opportunities exist with ads and/or copy that people weren't sure about. Traditional marketers outside of e-commerce often have customer surveys indicating “how did you hear about us.” This won’t indicate which ads/strategy are optimal when running multiple different keywords, ads, etc. The inability to determine what is efficient at a lower level is a key skill offered by Data Analysts.


The most important lesson?

Clicks & Conversions ≠ Customers.


In the next post we will cover some specific examples.


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