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Business Analytics Capstone

Framework for Strategy


Jeya Sri Ramesh
Oct 9th, 2016
Problem Statement
Problem Statement
Describe the Problem Adblockers present to GYF

Problem statement:
Ad-blockers block all ads in the websites for the end-users. This affects the potential advertisements of the
advertisers displayed in the GYF platform from reaching their prospective customers. This in turn directly affects the
revenue of GYF.

Proposed solution:
A successful solution is to come up with alternative methods of online advertising that provides a pleasant web-
experience for the end-users. This includes incorporating the GYFs internal people with new technical skills, making
the advertisers aware of the change in trends, predicting the effects of ad-blockers, amending the existing marketing
strategies for better end-user insights and measuring the financial impact.
Problem Statement
Application Exercise 1 Research Methods and Tools (Optional)

Research Method
Causal Research
The problem here is clearly defined that the ad-blockers have a negative impact over the business
model of GYF. The questions here are
1. Can we measure the effects of ad-blockers on GYF?
2. Can we attract and maintain the ad-buying customers by changing the existing method of online
advertisement?
Research Tools
A/B Testing
Regression Analysis
Correlation Analysis
Strategy
Strategy
Describe your proposed strategy

My strategy would be to opt native advertising for GYF portal and come up with a tool to provide
customized reports for the advertisers respectively.

The areas where we are will be concentrating native advertisements are Search, Display and Classified
ads. As videos will be the most opted advertisement medium in upcoming years, we will go for content
stitching where we the advertisements and the videos are stitched together. Here the standards will be set for
such ad-buying so that the user experience is not affected.

The reason why we come up with a separate analytic tool is, ad-blockers usually blocks the cookie and
hence the tracking by third party becomes difficult. Apart from that more emphasis will be given to reduce
page loading time and the bandwidth consumption for native advertisements.
Strategy
Describe your proposed strategy

Strategy implementation:

On organization level, I have to hire a new DATA team leader. The ad-space sales team and the portal
operations team will need additional skill training to opt native advertising. A separate team will be allotted to
educate the advertisers on the native advertising technique. The existing marketing strategies will be amended
with new end-user reach-out modes. The trend of ad-blocking on hardware and software level will be constantly
monitored for constant upgrading of strategies.

On customer level, A/B Testing, Pricing Analytics will have to be performed in-order to make sure we will
reduce negative user reaction towards native advertisement. The analytical tool and its reports are to be
provided free of cost to the ad-buyers thereby gaining their trust towards our native advertisement

On financial level, the advertisers will be charged for tailoring their ads into native ads in addition to the ad-
space fee.

On operational level, we will monitor the reach, frequency, impact and click through rates for the native
advertisements. The engagement level of the content will be monitored on a separate scale so that the user
experience stays positive.
Strategy
Describe your proposed strategy

PROBABLE PROBLEMS

Case 1: The end-user/ the associated company already uses ad-blocker


Cookie tracking and other third party measurement tools will remain blocked.
Solution Using GYFs analytic tool at free of cost
Some of the native advertisements may be blocked in ad-blocker.
Solution - In-case of detecting an ad-blocker, the end-user can be urged to turn-off the ad-blocker to
experience an engaging environment.
In-cases where the organization has installed ad-blocker in its network, none of the end-users associated
with it can turn it off.
Solution - NIL

Case 2: The end-user doesnt have ad-blocker


The end-user may install ad-blocker anytime
Solution Making sure the native advertisements are customer experience focused and doesnt
compromise with their content enjoyment. i.e balancing content and advertisement.
Strategy
Application Exercise 2 Hiring a Team Leader (Optional)

I choose PEGGY PROSPECT.

Reasons why Peggy prospect will be a better choice


Prior work experience & deep knowledge in ad-selling field. This shows she knows the industry trends.
Personality matches with DATA team. This makes it easy to get the team aligned.
Good job knowledge. This reduces the time to get used to the new role and responsibilities.
Her focus on short term strategies can be changed in the coming days.
Effects and Measurement
Effects
Describe the anticipated effects of your strategy

Strategy Effects

New skill training

+ Customer
experience
+
+
Free analytical tool + Ad-space sales
-
+ +
+
Advertisers Trust Revenue
+
-
Micro monitoring users
+
Website visits
+
+ Engaging +
advertisements
+
Advertising standards
Effects
Application Exercise 3 Designing a Deterministic Optimization Model

The entire training program scenario can be algebraically expressed as follows:

a $ spent on Internal Hard Skills


b $ spent on Internal Soft Skills
c $ spent on External Hard Skills
d $ spent on External Soft Skills
NPI Net Productivity Increase over next period in $

(Maximize) NPI = 0.2*a + 0.6*b + 0.7*c + 0.4*d subjected to


a + b + c + d = $65000 and
0.2*a + 0.7*c >= $20000 and
0.6*b + 0.4*d >= $12000 and
0.2*a + 0.6*b >= 0.6 ( 0.7*c + 0.4*d) and (a>$0, b>$0, c>$0, d >$0)

On optimum resource allocation, a maximized NPI of $32000 can be reached as follows:


a $18670, b $ 13800, c $ 23240, d $ 9290
(Solved the above inequations by converting them into equations first and then checked for a maximized solution
with the Excel - Solver)
Effects
Application Exercise 3 Designing a Deterministic Optimization Model

A maximized NPI of $42820 can be reached by allotting, a $0, b $ 26760, c $ 38240, d $0 with all
constraints met. (Solved directly with the Excel - Solver). But in this case,
$ spent on Internal Hard Skills = $0 and $ spent on External Soft Skills = $0 .

But, as a DATA team leader, I dont concentrate only on achieving an immediate high NPI but also on the training
necessary for keeping the team good at what they do. Thereby a higher NPI can be reached in the coming years
even if its not in the immediate period that follows.

So I will not the opt the allotment mentioned above (NPI of $42820) and will go for the allotment mentioned in the
earlier slide (NPI of $32000) .
Measurement
Describe the anticipated effects of your strategy and how you will measure them

A/B testing to measure customer experience on engaging native advertisements

Hypothesis testing mode - Correlation & Regression analysis

Hypothesis
Lesser the forceful nature of advertisements, lesser is the possibility to install ad blockers.
Providing free analytical tools to advertisers makes an advertising portal favorable.
Native advertising gives users a pleasant advertisement watching experience.
Customer experience and increase in revenue are dependent.
Measurement
Application Exercise 4 Identifying Key Drivers

New skill training


To implement native advertising
Free analytical tool
To increase web visits
Micro monitoring users
To sell more ad-spaces
Advertising standards

Objectives Strategies

More ad-space sales


Pleasant customer experience
More website visits
Engaging advertisements
More revenue

Outcomes Key drivers


Conclusion
Providing a better customer experience and a free analytical tool for advertisers to measure them will
help in selling more ad-space.
Tailoring advertisements into native advertising helps to prevent opting ad-blockers.
These in turn brings in revenue.