Business Analytics Capstone Framework for Strategy Business Analytics Capstone Framework for Strategy

  • View
    5

  • Download
    0

Embed Size (px)

Text of Business Analytics Capstone Framework for Strategy Business Analytics Capstone Framework for...

  • Business Analytics Capstone Framework for Strategy

    Learner Name: Tang Chat Peng

    Date: 1st May 2016

  • Problem Statement

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •Background •Cost-per-click: Many advertisers pay money each time an ad is shown to a visitor (contrary to the popular notion that ads only pay when clicked).

    •But ad blockers cut off this revenue stream and make it difficult to offset even the running cost of storing and delivering content to visitors.

    •According to PageFair, ad-blocking software use grew 41 percent in the 12 months to August 2015. The number of ad block users have increased steadily as shown by the graph on next slide.

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    Reference: Statista.com

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •How concerned should Yahoo be?

    Reference: trefis.com

    • Yahoo should be

    concerned a lot. • Yahoo's business

    model is founded on

    selling digital

    advertising on its Web

    properties.

    • As seen from left, most

    of Yahoo's revenues

    come from online and

    mobile advertising,

    where it relies heavily

    on a patchwork of

    companies to supply

    advertising technology.

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •Problem defined

    •The increased use of ad-blocking software is a threat to Yahoo’s profit as Yahoo rely heavily on revenues from online and mobile advertising.

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •What are ad blockers? •They are software which

    •filter out ads from webpages, based on predefined filter lists.

    •also block away pieces of code that “resemble” or uses iframes, bad scripts (such as analytics scripts), large blocks or files (images, videos).

    Reference: http://marketing.happymarketer.com/how-

    adblockers-help-content-marketing-through-mobile

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •Reasons for increased use of ad-blocking software

    Reference:

    http://www.business2community.c

    om/infographics/ad-blocking-rise-

    statistics-trends-

    01435073#7JTwCxCW7dbLRq07.

    97

    http://www.business2community.com/infographics/ad-blocking-rise-statistics-trends-01435073#7JTwCxCW7dbLRq07.97

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •Implications on Customer Analytics •Increased use of Ad-blocking causes the loss of data:

    •The loss of web data from consumers – basically all the different kinds of searches done on internet and all the different websites people might be visiting, etc.

    •The loss of mobile data – the tracking of mobile app users and their locations

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •Implications on Customer Analytics •What the loss of data means for Marketing Research:

    •For Descriptive Research (An advertiser is aware of a problem): for passively observing behaviour (unobtrusive) – web data and mobile data – loss of data means less effective research leads to less effective managerial questions.

    •For Causal Research (An advertiser has clearly defined a problem): Doing A/B testing will be less effective as adblockers are busy blocking trackers, social media sharing buttons and other features that you may be using to better understand your customers and measure your conversion goals.

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •Implications on Customer Analytics •What the loss of data means for Predicting Consumer Behaviour:

    •Regression analysis – not enough data at a certain time for independent variables (data for different ad campaigns that causes a certain consumer behaviour) to explain a dependent variable means:

    •With too small a sample, regression model may over-fit the data, meaning it fits the sample data well, but does not generalize the whole population => can’t do regression effectively.

    •Needs time to collect more web and mobile data which can be costly in the long run.

    •Specific Example: Demand Analysis: With lack of data for Past Demand (past online and offline sales conversions) vs prices => can’t do regression properly => can’t adjust prices effectively to predict future demand.

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •Implications on Customer Analytics •What the loss of data means for Marketing Decisions:

    •For an advertiser: If we cannot predict consumer behaviour effectively for a certain independent variable , then we can’t find the optimal independent variable effectively to maximise revenue.

    •eg. Demand Analysis: If we cannot predict demand effectively for a certain price, we cannot optimize price effectively to maximize revenue.

    •What the loss of data means for Marketing Strategy: •For an advertiser, as it is more time-consuming and costly to gather, interpret and model info => less effective strategy for any upcoming ad campaign.

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •Implications on Operations Analytics •What models would I use to predict the effects of adblockers and why?:

    •I would use time-series based models with significant amount of data.

    •Reason#1: The aim is to isolate patterns in past data so as to compare the effects without ad-blockers and the effects with ad- blockers easily.

    •Reason#2: The expected effect is uncertain as we do not control user behaviour, as a result we cannot predict future user behaviour with certainty.

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •Implications on Operations Analytics •Measuring Viewability to predict the effects of adblockers:

    •Viewability is an online advertising metric that aims to track only impressions that can actually be seen by users. For example, if an ad is loaded at the bottom of a webpage but a user doesn't scroll down far enough to see it, that impression would not be deemed viewable.

    •I choose Viewability as many advertisers pay money each time an ad is shown to a visitor.

    •Predicted casual effect:

    More ad-blocks lesser Viewability

  • Problem Statement– Describe the Problem Adblockers present to Yahoo

    • Use this space for describing the problem. Be as specific as possible! Consider the implications of adblockers on the following: customers, revenue, and Yahoo’s internal organization.

    •Measuring Viewability to predict the effects of adblockers (continued):

    •For an ad campaign, for a PC webpage and mobile app each, steps:

    1. Enable adblock detection and measurement. Build an in-house solution - can be done like downloading an image hosted on