In the competitive world of digital marketing, understanding the true impact of your campaigns is crucial. Conversion Lift testing provides a robust method to measure the actual conversions driven by your ads, offering insights into the incremental online, offline, and mobile app business your campaign generates.

What is a Conversion Lift Test?

A Conversion Lift test compares sales or conversion outcomes among people who have seen your ads with those who haven’t. This comparison reveals the additional business directly attributed to your campaign. The process involves:

• Random Assignment: People from your target audience are randomly assigned to a test group (who may see the ad) or a control group (who won’t see the ad).
• Outcome Measurement: After the campaign ends, you assess whether the test group took action or converted in greater numbers than the control group. This difference indicates the ad’s influence on conversions.

Conversion Lift Setup Checklist

Before initiating a Conversion Lift test, ensure you are well-prepared. Here’s a checklist to guide you:

1. Duration: Run the test for 1–2 conversion cycles or at least two weeks.
2. Budget: Allocate enough budget to exit the learning phase.
3. Creative: Ensure each ad includes a prominent call to action and consistent branding.
4. Audience: Minimise audience overlap with other campaigns or ad accounts to avoid inflating the baseline.
5. Dark Period: Consider a pre- or post-study media dark period to reduce contamination.
6. Conversion Events: Select events that reflect your primary business goals along the marketing funnel.
7. Edits: Avoid editing campaigns mid-test or ending tests early to maintain data integrity.

Components of Conversion Lift Test Results

Once your Conversion Lift test concludes, you can review the results and act accordingly. The results report will incorporate historical priors and relevant data to boost confidence in your findings, which will update automatically as new data is integrated.

• Conversion Lift Metric: This metric estimates the number of incremental conversions resulting from your ads. Incremental conversions are additional conversions that wouldn’t have occurred without the ads being tested.
• Cost Per Conversion Lift Metric: This measures the average cost of each additional conversion caused by your ads. It is calculated by dividing the amount spent on your ads by the estimated number of incremental conversions. Comparing this metric to your average revenue or customer lifetime value helps evaluate return on investment.

Potential Outcomes and Actions

Let’s explore the potential outcomes and their implications:

• Positive Results: If the test results are positive and statistically significant, consider continuing or expanding the campaign. This is also a good time to optimise your strategy and A/B test different variables.
• Negative Results: If the results are flat or not statistically significant, adjust your strategy and rerun the test. Reference the setup checklist to ensure best practices were followed.

Conclusion

Conversion Lift testing is an invaluable tool for marketers aiming to make data-driven decisions. By carefully setting up and analysing these tests, you can gain a clearer understanding of your campaign’s impact, optimise your ad spend, and ultimately drive better business results. Implement Conversion Lift testing in your digital strategy and harness its potential for more informed marketing decisions.

Stay tuned for more insights and tips on digital marketing strategies at Amin Digital Blog.

 ————————————————————————————————————————————————————————

Have a look at our case studies, you can see how we implement our knowledge onto our clients.