How using purchase optimization in Facebook ads increases instant donor conversion and lowers cost per donor
Live Action
Experiment Summary
Ended On: 08/06/2020
Live Action was running a new petition in Facebook ads, and wanted to test their traditional method (optimizing for names) against purchase optimization. The only variable in ads was the optimization event.
Research Question
Does purchase optimization increase instant donor conversion, at a lower cost than optimizing for names?
Design
Results
| Treatment Name | Conv. Rate | Relative Difference | Confidence | |
|---|---|---|---|---|
| C: | Custom Conversion Optimization | 0.01% | ||
| T1: | Purchase Optimization | 0.04% | 160.5% | 100.0% |
This experiment has a required sample size of 39,152 in order to be valid. Since the experiment had a total sample size of 296,000, 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
× 160.5% increase in conversion rate
× 0% increase in average gift
Key Learnings
Not only did purchase optimization increase instant donor conversion by 160%, it also lowered cost per donor by 60%, from about $100 to $39/donor. In addition, purchase optimization allows us to get more highly qualified names/leads than optimizing for names, but still at a cost much lower than our benchmark, at an average of $.53 per name.