Below is one case -ABC Retail, a leading e-commerce platform, is currently facing challenges with the performance of its display advertising campaigns. The marketing team has noticed a decline in...

ABC Retail
ABC Retail
Report
Executive Summary
ABC Retail is already a big player in the online retail business, and display advertising campaigns are currently facing some grave challenges, such as a downward trend in CTR (Click-through-rates) as well as declining conversion rates. This report aims to provide a comprehensive approach on how to optimize ABC Retail's display campaigns, with a clear focus on audience segmentation, analysis of ad creative, optimization of ad placement, dynamic retargeting, refinement of ad copy, and budget allocation tactics. This will have real performance metric improvement on the campaign, driving ROI (Return on Investment), and an increase in customer engagement on the platform.
Contents
Executive Summary    1
Introduction    2
Analysis of Key Metrics    2
Performance Analysis of Current Campaign    4
Projected Outcomes and Expected KPIs    5
Implementation Plan & Strategies    6
Recommendations    8
Conclusion    9
References    10
Introduction
ABC Retail has established its brand, having emerged as an e-commerce leader, had recently to recreate their performance of display advertising. However, due to emergence of new entrants and changing demands of the customer, the company has faced recent decline in CTR and conversion rates has brought into question the need for a more detailed analysis of present campaign strategy. Porter (2018) discusses the Five Competitive Forces That Shape Strategy in the Harvard Business Review, hence this following report is inspired by an extensive research on the market and digital market trends to present a comprehensive roadmap in addressing the challenges, to harness the opportunities for optimization.
Analysis of Key Metrics
By the virtue of this report, I'm presenting not only the context of what ABC as a company is facing but also share an extensive analysis of the key performance metrics that are crucial in measuring the effectiveness of marketing efforts. Along with this, I would also present a deep dive into the display advertising which are of utmost importance to the company. Christensen, Raynor, and McDonald (2019) explain Disruptive Innovation in a Harvard Business Review, these metrics include CTR (Click Through Rate), conversion rates, ROI (Return on Investment), cost per acquisition, customer lifetime value (CLTV), bounce rates, average session duration, and revenue per visitor. Primarily, these metrics severe as an important indicators of campaign success and will be derived from sources such as Google Analytics, ad platform analytics, CRM data sources, A/B testing datasets, and user behaviour analytics tools.
· Click-Through Rate: Narayanan and Fahey (2020) delve into Adaptive Strategy in their Harvard Business Review, CTR represents the percentage of clicks for an ad compared to the number of impressions. It is computed as (Clicks / Impressions) x 100 and is used to measure the effectiveness of an ad in generating user engagement.
· Conversion Rates: Conversion rates indicate the percentage of the users who have performed the desired action. It is computed as (Number of Conversions / Number of Clicks) x 100 and is an important metric for measuring the success of the marketing campaign in achieving the desired outcomes.
· Return on Investment: ROI refers to the profitability of the investment compared to its cost. In the context of an ad, it computes revenue generated from ad spend in consideration of sales revenue, cost of acquisition, and campaign cost. It is computed as (Net Profit / Cost of Investment) x 100 and it measures the efficiency and effectiveness of the ad campaigns.
· Cost per Acquisition: CPA refers to the average cost involved in acquiring a customer or lead. It can be derived from the total cost of marketing efforts divided by the number of acquisitions made during a specific period of time. CPA is an important metric in measuring the cost-effectiveness of acquiring new customers or leads through an advertising campaign.
· Customer Lifetime Value: CLTV represents the total amount of revenue generated by a customer for the entire duration of their relationship with a business. It considers the average purchase value, the frequency of purchase, and the retention rate of the customer. CLTV is a key metric for establishing long-term value of customers and for determining the right marketing strategies concerning the retention and loyalty of the customer.
· Bounce Rates: Bounce rates are a measure of how many people visit a website or a landing page and leave without further...