How co-targeting with Facebook ads affects direct mail acquisition response rate
Human Coalition
Experiment Summary
Ended On: 10/25/2023
Human Coalition was running direct mail acquisition and wanted to test the impact of adding brand ads alongside these pieces so that people would see ads 7 days before and 7 days after the direct mail piece arrived in their mailbox.
There was a signer test in the direct mail piece itself, between the Human Coalition President Jeff Bradford and the former NFL Player Benjamin Watson. Ads were reflective of the signer that the recipient would receive a letter from.
They split the acquisition lists in two and launched an ad campaign, spending $5000 for the total audience to maximize reach across the target audiences.
Research Question
We believe that showing Facebook ads for direct mail acquisition prospects will achieve an increase in conversion rate because we will increase brand awareness and familiarity during the “ask period”. because we will increase brand awareness and familiarity during the “ask period”.
Design
C: Control
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Results
| Treatment Name | Conv. Rate | Relative Difference | Confidence | |
|---|---|---|---|---|
| C: | Control | 0.32% | ||
| T1: | Treatment #1 | 0.44% | 35.8% | 98.5% |
This experiment has a required sample size of 20,707 in order to be valid. Since the experiment had a total sample size of 75,017, and the level of confidence is above 95% the experiment results are valid.
Flux Metrics Affected
The Flux Metrics analyze the three primary metrics that affect revenue (traffic, conversion rate, and average gift). This experiment produced the following results:
0% increase in traffic
× 35.8% increase in conversion rate
× 0% increase in average gift
Key Learnings
The key learning from this experiment is that adding brand ads alongside direct mail acquisition pieces significantly increased the conversion rate and resulted in a 35.8% increase in donations. This indicates that the strategy of increasing brand awareness and familiarity during the "ask period" positively influenced donors to take action. It is important to note that these results only came with the Benjamin Watson treatment — there was no significant difference on the Jeff Bradford-signed email, which had a lower response rate and lost the signer test. Based on these findings, it is recommended to continue using brand ads alongside direct mail acquisition campaigns in future experimentation. This strategy can be an effective way to maximize reach across target audiences and increase conversion rates. However, it is important to carefully monitor and analyze the performance of these ads to ensure they are effectively driving donations. Additionally, it may be beneficial to further explore the impact of different ad messaging and visuals to optimize the effectiveness of the brand ads. By continuously testing and refining the ad content, it is possible to identify the most compelling and persuasive elements that resonate with the target audience and drive even higher conversion rates. Overall, this experiment highlights the importance of integrating digital advertising with traditional direct mail campaigns and the potential for significant increases in donations and conversion rates when done effectively.