Stukent Mimic Pro Digital Marketing Simulation. Team 2. Devon Wetteland, Austin Bretting, Corrin Ziepke, Adam Fitzgerald

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1 Stukent Mimic Pro Digital Marketing Simulation Team 2 Devon Wetteland, Austin Bretting, Corrin Ziepke, Adam Fitzgerald

2 Executive Summary The Stukent Mimic Pro Digital Marketing Simulation contained 7 rounds, each focusing on developing a different digital marketing skill pertaining to both ad and campaigns. Our simulation started strong with high impressions, conversion rates, and profits in the first and second rounds. By the final rounds, our ROI s and conversion rates had declined slightly. Our ad campaigns were much more successful than the campaigns, as we received zero conversions and -100% ROI on two of our campaigns. Much of our success can be contributed to carefully selecting keywords that helped boost impressions, click through rates, and ultimately, conversion rates. We believe our profit could have been increased if we had made more drastic changes to the ad campaigns between rounds. Instead, we made minimal changes, mostly pertaining to keyword bids, which did not have as much impact as we had hoped. Overall, our Stukent Mimic Pro Digital Marketing Simulation was successful. In the final round, our revenue totaled $266, and our profit came out to $23, Our ROI was 688.3% and our overall reach was 192,541. We spent $3, of our $5, budget, coming in almost $2, under budget. Had we invested more money in our campaigns, we may have seen greater success regarding conversion rates, ROI, and overall profit for the campaigns. Despite strategical improvements that could have been made, the campaign was successful in generating a significant profit while staying under budget. 2

3 Table of Contents Executive Summary.2 Table of Contents.3 Summary of Simulation Round 1..4 Round 2..4 Round 3..5 Round 4..5 Round 5..6 Round 6..6 Round 7..7 Round Highlights Overall ROI...8 Overall Reach.8 Ad Clicks...9 Ad Revenue...9 Conclusion Appendix

4 Simulation Summary Round 1 Overview: Round 1 was an introductory round to the course that focused on creating an ad and campaign. Both campaigns were successful, earning a profit with high conversion rates. Impact: Profit was generated in both the ad and campaign, resulting in a successful start to the simulation. Budget: We spent $ of our $5, budget in the first round. This cost was justified in that it gave our simulation a strong start. The ad campaign made up 96.5% of the cost while the campaign made up 3.5% of the cost. 88.9% of profits were generated from the ad campaign and 11.1% from the campaign. Ad Campaign: The ad campaign generated $3,000 in profit with 3,632 impressions, 40 conversion, and a conversion rate of 3.88%. Our keyword was successful in generating impressions, high click through rates, and ultimately conversions. Campaign: Our campaign was successful, but not as successful as our ad campaign. 11,492 s were sent out with a 15% open rate, 5 conversions, and a profit of $375. Round 2 Overview: Round 2 was a highly successful round. This round just focused on creating ad campaigns for 3 separate products. We had an extremely high number of conversions and a large profit. Impact: Round 2 increased our overall profit significantly and gave us confidence in the use of our keywords. Budget: We spent $1, of our $5, budget. Ad Campaign: Our ad campaign was extremely successful. We had 89,897 impressions, 137 conversions, a conversion rate of 5.62%, and profits of $18, Campaign: We did not have to create an campaign this round. However, 1.9% of the cost from Round 2 was from from the campaign created in Round 1. 4

5 Round 3 Overview: In Round 3, we created another ad campaign for a new product. We generated $19, in profit. Impact: In Round 3, our revenue, profit, and ROI all decreased, while our reach increased, despite the ad campaign generating more profit than in Round 2. Budget: We spent $2, of our $5, budget. Ad Campaign: This ad campaign had 139,604 impressions, 156 conversions, a conversion rate of 4.13% and a profit of $19, Our most successful ad campaign from this round was our Canon Rebel t6i, generating $7, of the profit. Campaign: We did not have to create an campaign for this round. 1.3% of the costs in Round 3 came from the campaign created in Round 1. Round 4 Overview: Our ad campaign in Round 4 generated $20, while our campaign did not generate any revenue. Impact: Our revenue, profit, and ROI all increased from Round 3, but our overall reach decreased. Budget: We spent $2, of our $5, budget. Ad Campaign: Our ad campaign had 138,108 impressions, 158 conversions, a 4.27% conversion rate, and generated $20, in profit. Campaign: We sent out 2,400 s for the campaign in Round 3. There was a 19% open rate, 37 clicks, and an 8% click rate, but zero conversions and zero dollars generated. 5

6 Round 5 Overview: In Round 5, we created an ad and campaign. Our ad campagin generated $25, in profit and our campaign generated $ in profit. Impact: In Round 5, we generated the highest revenue and profit out of all of the rounds. Our reach also increased. However, our ROI decreased from Round 3. Budget: We spent $2, of our $5, budget. Ad Campaign: Our ad campaign in Round 5 had 173,467 impressions, 198 conversions, a 4.18% conversion rate, and $25, in profit. The most successful ad campagins continued to be the Canon Rebel t6i, the Panasonic Lumix DMC GF6, and Canon Cameras. Campaign: We sent out 11,492 in Round 5 that resulted in a 19% open rate, 5% click through rate, 4 conversions, and $ in profit. Despite actually generating a profit from our campaign this round, our ROI was % since we spent $ on the campaign. Round 6 Overview: Round 6 was a negative turning point for our simulation. This is where our strategy was not as effective, as we were only making minimal changes. With so many ad campaigns to keep track of, we needed to make more drastic changes for there to be substantial growth between rounds. Impact: Our revenue went down from the previous round. Our budget spend went up and we had no conversions for our s, making this round less successful. Budget: We spent $2, of our $5,000 budget. For this round, 100% of our profit came from ad campaigns. Ad Campaign: Our ad campaign was successful in this round. With a conversion rate of 4.04% and 182,187 impressions, we had 207 conversions for this round. Our top 3 ads were Canon Rebel t6i (59 conversions), Canon Cameras (46 Conversions), and Nikon Cameras (37 Conversions). Campaign: Our campaign for this round was not as successful We had zero conversions while still spending $ Our ad campaign did well enough that the spending loss for s didn t affect our overall profit in a dramatic way. Our ROI was -100%. 6

7 Round 7 Overview: The final round, Round 7, was not as successful as Round 6. Impact: Our revenue continued to decline in the final round. We had just under $2,000 in our budget remaining, but our profits for this round totalled $23,715.47, which was lower than the previous round. Budget: Round 7 of the simulation, we had only spent $3, of our $5,000 budget. For this round, 100% of our profit came from ad campaigns. Ad Campaign: Despite a declining revenue and profits, our ad campaign still did well. We had a 3.94% conversion rate for our online ads. Some ads were continuing to geneate significant profits, while others were not as successful. Canon PowerShot SX280 HS and our Sony ad both had only 7 impressions, while the Canon D5 had only 6 impressions. Campaign: Our campaign was not successful this round. We spent $29.00 on the s, but did not have a single conversion despiting making changes from Round 6. 7

8 Round Highlights Ad Clicks The number of ad clicks increased every round, except in rounds 3 and 4 when it decreased by around 80 clicks. Even though Round 3 had more ad clicks than Round 4, there were only two more conversions. During each round, our Go Pro and Samsung WB380F ad groups continued to have the lowest ad clicks. The highest ad clicks came from the Nikon Cameras, Canon Cameras, and the Canon Rebel which experience similar numbers. Round 1 resulted in 1,031 ad clicks and by round 7 we increased our ad clicks to 5,176. The reason our ad clicks continued to increase throughout each round is because we used preferred keywords that led to higher impressions and increased consumer interest in clicking on our ads. Ad Revenue From rounds 1 to 2, we saw a huge increase in ad revenue. This is due to the fact that we were able to go from 1 product to 4 products between the rounds. This increase in products created an increase in our ad revenue that helped us have a much larger class average in ad revenue than any other group. The quick rise helped us know that what we were doing was working. Due to this round s success, we only tried to do simple changes to the ad groups that weren t doing as well as others and keep the one that were doing well the same. While we saw a slight dip in revenue in the last 2 rounds, we were still able to have an ad revenue of over $200,000 for 6 rounds instead of the class average of only 3. 8

9 Overall ROI Overall, return on investment was one of our best metrics, particullarly in rounds 1 and 2. We jumped from % to %. We were 504% above the class average, but as the rounds went on, it started to even out. Our ROI dropped down to % in Round 3. The class average still did not surpass our ROI until Round 7, but even then, the margin was only 13.52%. Canon cameras consistently had the best ROI for ad campaigns, with an average ROI of 2,238%. Overall Reach Our overall reach steadily increased throughout each round, except in Round 4 where it decreased slightly. We believe this decrease is due to the fact that we chose a more selective mailing list of only 2,400 people for our campaign in Round 4. Our strategic use of keywords led to more impressions in the other rounds, though that did not always result in higher conversion rates. We started with 38,356 impressions in Round 1, and ended with 192,541 impressions in Round 7, showing a significant increase in reach over the course of the simulation. B. We hypothesize the reasons for these above average metrics are the amount of time we spent researching each product and target market, and determining how they should be positioned. Keyword research was also a contributing factor. C. We could have focused on changing elements of our campaigns each round to achieve better results and increase profits. In Round 1, we made a profit of $375 in the campaign, from rounds 2 to 4 we made no profit, in Round 5 we made a small profit of $108, and then we went back to making no profits in rounds 6 or 7. D. The round that stood out the most for ad revenue was Round 5, which had a total revenue of $283, Round 7 stood out for ad clicks with 5,176 total clicks. Reach was highest in Round 7 with 192,617 impressions from our ad campaign. Our ROI was best in Round 2 with an ROI of 1,138.99% due to low costs and and a high conversion rate and profit. 9

10 Conclusion Challenges The most challenging task for our group was getting conversions for the campaigns. Despite choosing and bidding on keywords strategically, creating catchy subject lines, and connecting the landing page to the advertisement, many of our campaigns were unsuccessful. After analyzing our spending and final budget, we believe we did not invest enough money in our campaigns for them to generate a high conversion rate. We tried various layouts, targeted lists, and value propositions with each campaign, but still continued to have poor results. If we had spent more money on customized banners and ads within the s, we believe our conversion rates and overall profits from the campaigns would be higher. Lessons Learned Important lessons learned through participating in the Stukent Mimic Pro Digital Marketing Simulation include strategically choosing keywords that fit the ad or campaign s value proposition and bidding the correct amount. We calculated our bids based on the average bid price and its demand. If a keyword had a high or medium demand, we would bid 15-20% above the average bid price. If it had a low demand, we would bid 10% below. This method was effective in generating high impressions for our campaigns while keeping our costs low. Other important lessons we learned included the importance of the content in our ads and s. The copy in the headings, subject lines, and body text all had to relate back to the singular message we were pushing in that campaign. The most successful ad campaigns we had were successful due to properly chosen keywords and carefully written copy that promoted a single, clear message. Close Ultimately, our Stukent Mimic Pro Digital Marketing Simulation was successful. We generated revenue and profit in every round, were leaders in ROI and reach, and managed to stay $2,000 under budget. Our ad campaigns were more successful than our campaigns. Had we invested more money into our campaigns and made more drastic and strategic changes to our ad campaigns between rounds, our overall impressions and profits could have been higher. We will apply the information learned from the Stukent Mimic Pro Digital Marketing Simulation to future digital marketing campaigns in order to increase their success. 10

11 Appendix Round 1 Round 2 11

12 Round 3 Round 4 12

13 Round 5 Round 6 13

14 Round 7 Final Budget Overall Revenue 14

15 Overall Profit Overall ROI Overall Reach 15