Business Analytics Capstone Framew Framework ork for Strateg Strategy y Jeya Sri Sri Ramesh Oct 9th, 2016
Problem Statement
Problem Statement –
Describe the Problem Adblockers present to GYF
Problem st atement: Ad-blockers block all ads in the websites for the end-users. This affects the potential advertisements of the advertisers displayed in the GYF platform from reaching their prospective customers. This in turn directly affects the revenue of GYF.
Proposed solution: A successful solution is to come up with alternative methods of online advertising that provides a pleasant webexperience for the end-users. This includes incorporating the GYF’s internal people with new technical skills, making the advertisers aware of the change in trends, predicting the effects of ad-blockers, amending the existing marketing strategies for better end-user insights and measuring the financial impact.
Problem Statement –
Application Exercise 1 – Research Methods and Tools (Optional) •
Research Meth od
― Causal Research The problem here is clearly defined that the ad-blockers have a negative impact over the business model of GYF. The questions here are 1. Can we measure the effects of ad-blockers on GYF? 2. Can we attract and maintain the ad-buying customers by changing the existing method of online advertisement? •
Research Tools
― A/B Testing ― Regression Analysis ― Correlation Analysis
Strategy
Strategy Describe your proposed strategy
My strategy would be to opt native advertisi ng for GYF portal and come up wit h a tool to pr ovide custom ized reports f or the advertisers respectively.
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The areas where we are will be concentrating native advertisements are Search, Display and Classified ads. As videos will be the most opted advertisement medium in upcoming years, we will go for content stitching where we the advertisements and the videos are stitched together. Here the standards will be set for such ad-buying so that the user experience is not affected.
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The reason why we come up with a separate analytic tool is, ad-blockers usually blocks the cookie and hence the tracking by third party becomes difficult. Apart from that more emphasis will be given to reduce page loading time and the bandwidth consumption for native advertisements.
Strategy Describe your proposed strategy
Strategy implementation: •
On organization level, I have to hire a new DATA team leader. The ad-space sales team and the portal operations team will need additional skill training to opt native advertising. A separate team will be allotted to educate the advertisers on the native advertising technique. The existing marketing strategies will be amended with new end-user reach-out modes. The trend of ad-blocking on hardware and software level will be constantly monitored for constant upgrading of strategies.
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On custom er level, A/B Testing, Pricing Analytics will have to be performed in-order to make sure we will reduce negative user reaction towards native advertisement. The analytical tool and its reports are to be provided free of cost to the ad-buyers thereby gaining their trust towards our native advertisement
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On financial l evel, the advertisers will be charged for tailoring their ads into native ads in addition to the adspace fee.
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On operational level, we will monitor the reach, frequency, impact and click through rates for the native advertisements. The engagement level of the content will be monitored on a separate scale so that the user experience stays positive.
Strategy Describe your proposed strategy PROBABLE PROBLEMS
Case 1: The end-user/ the associated company already uses ad-blocker •
Cookie tracking and other third party measurement tools will remain blocked. Solution – Using GYF’s analytic tool at free of cost
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Some of the native advertisements may be blocked in ad-blocker. Solution - In-case of detecting an ad-blocker, the end-user can be urged to turn-off the ad-blocker to experience an engaging environment.
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In-cases where the organization has installed ad-blocker in its network, none of the end-users associated with it can turn it off. Solution - NIL
Case 2: The end-user doesn’t have ad - blocker •
The end-user may install ad-blocker anytime Solution – Making sure the native advertisements are customer experience focused and doesn’t compromise with their content enjoyment. i.e balancing content and advertisement.
Strategy Application Exercise 2 – Hiring a Team Leader (Optional)
I choose PEGGY PROSPECT.
Reasons why Peggy prospect will be a better choice •
Prior work experience & deep knowledge in ad-selling field. This shows she knows the industry trends.
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Personality matches with DATA team. This makes it easy to get the team aligned.
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Good job knowledge. This reduces the time to get used to the new role and responsibilities.
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Her focus on short term strategies can be changed in the coming days.
Effects and Measurement
Effects Describe the anticipated effects of your strategy Strategy
Effects
New skill training + Customer experience + Free analytical tool
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Ad-space sales +
+ +
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Micro monitoring users
Revenue
Advertisers’ Trust
+ Website visits
+ + Advertising standards
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Engaging advertisements +
+
Effects Application Exercise 3 – Designing a Deterministic Optimization Model
The entire training program scenario can be algebraically expressed as follows:
a – $ spent on Internal Hard Skills b – $ spent on Internal Soft Skills c – $ spent on External Hard Skills d – $ spent on External Soft Skills NPI – Net Productivity Increase over next period in $
(Maximize) NPI = 0.2*a + 0.6*b + 0.7*c + 0.4*d subjected to a + b + c + d = $65000 and 0.2*a + 0.7*c >= $20000 and 0.6*b + 0.4*d >= $12000 and 0.2*a + 0.6*b >= 0.6 ( 0.7*c + 0.4*d) and (a>$0, b>$0, c>$0, d >$0)
On optimum resource allocation, a maximized NPI of $32000 can be reached as follows: a – $18670, b – $ 13800, c – $ 23240, d – $ 9290 (Solved the above inequations by converting them into equations first and then checked for a maximized solution with the Excel - Solver)
Effects Application Exercise 3 – Designing a Deterministic Optimization Model
A maximized NPI of $42820 can be reached by allotting, a – $0, b – $ 26760, c – $ 38240, d – $0 with all constraints met. (Solved directly with the Excel - Solver). But in this case, $ spent on Internal Hard Skills = $0 and $ spent on External Soft Skills = $0 .
But, as a DATA team leader, I don’t concentrate only on achieving an immediate high NPI but also on t he training
necessary for keeping the team good at what they do. Thereby a higher NPI can be reached in the coming years even if its not in the immediate period that follows.
So I will not the opt the allotment mentioned above (NPI of $42820) and will go for the allotment mentioned in the earlier slide (NPI of $32000) .
Measurement Describe the anticipated effects of your strategy and how you will measure them
A/B testing to measure customer experience on engaging native advertisements Hypothesis testing mode - Correlation & Regression analysis
Hypothesis •
Lesser the forceful nature of advertisements, lesser is the possibility to install ad blockers.
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Providing free analytical tools to advertisers makes an advertising portal favorable.
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Native advertising gives users a pleasant advertisement watching experience.
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Customer experience and increase in revenue are dependent.
Measurement Application Exercise 4 – Identifying Key Drivers
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To implement native advertising To increase web visits To sell more ad-spaces
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Strategies
Objectives
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New skill training Free analytical tool Micro monitoring users Advertising standards
More ad-space sales More website visits More revenue
Outcomes
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Pleasant customer experience Engaging advertisements
Key drivers
Conclusion •
Providing a better customer experience and a free analytical t ool for advertisers to measure them will help in selling more ad-space.
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Tailoring advertisements into native advertising helps to prevent opting ad-blockers.
These in turn brings in revenue.
