TV Ads & Customer Analysis

Darpan Chaudhary
20 July 2020
PROBLEM DEFINITION | Understanding the difference behaviour of new users compared to returning
users and suggest better bundling and marketing strategy
CURRENT STATE
• Our client is an American
multinational technology company
• MiQ runs display ads to increase
product awareness and drive sales
for Canadian Market
• Identified difference in new user and
returning user behavior and design
better bundling and marketing
strategy
DESIRED FUTURE STATE
• Having clear understanding about
various user segments and their
purchasing behavior
• Understanding effectiveness of TV
Ads and their impact on sales
• Creating a framework for better
product bundling and marketing
strategy
Data Dictionary | Dataset available for analysis of Sales at user level and TV Ads

DATA PROVIDED

CUSTOMER DATA TV ADS DATA

• Date • Date
• User ID • Hour
• Province • Product (Competitor/Advertiser)
• Product Bundle • Channel
• Price • Program
• Quantity

Data Quality Issues:

• Invalid User IDs: There were many user id as 0, which were making purchase every minute and clearly were users whose
ID were not captured
• Product Bundle: The Product that were sold together were delimited by “_” and this data was ungrouped for better
analysis
• Master Dataset: After resolving all the issue a master dataset was created, with all product separated and calculations for
total sales
PROVINCES - KEY FINDINGS | 90% of revenue is generated just by 4 provinces and about 42.8% is
generated by Ontario alone

Revenue & Sale

Revenue Generated Total Quantity sold
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

New Brunswick
Saskatchewan
Ontario

Newfoundland
Quebec

Alberta

Nova Scotia
British Columbia

Manitoba

• Revenue generated by Ontario is 42.8%, followed by British Columbia 19%, Quebec- 15.9% and Alberta- 12.6%

• These provinces are where most of the Canadian population reside, thus it is driving more sales

• This correlation can be easily observed by referring to the following link

Customer
Analysis
REPEAT USERS - KEY FINDINGS | We observe unusually high activity by these users at 9 AM and they
purchase less during starting of week

Order – Time of Day Order- Day of Week

Quantity Sold Revenue Quantity Sold Revenue
9.00% 18.00%
8.00% 16.00%
7.00% 14.00%
6.00% 12.00%
5.00% 10.00%
4.00% 8.00%
3.00% 6.00%
2.00% 4.00%
1.00% 2.00%
0.00% 0.00%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Sunday Monday Tuesday Wednesday Thrusday Friday Saturday

• We find that these users generally shop less on Mondays and Tuesdays, with sudden peak on Wednesday, which slowly
declines over the weekend

• We also note that these users usually shop mostly from late evening to midnight

• We observed that there was an unusually high spend at 9 AM in morning

NEW USERS - KEY FINDINGS | We observe shop relatively less on starting of week and weekends
compared to returning users

Order – Time of Day Order – Day of Week

Quantity Sold Revenue Quantity Sold Revenue
9.00% 20.00%
8.00% 18.00%

7.00% 16.00%
14.00%
6.00%
12.00%
5.00%
10.00%
4.00%
8.00%
3.00%
6.00%
2.00% 4.00%
1.00% 2.00%
0.00% 0.00%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Sunday Monday Tuesday Wednesday Thrusday Friday Saturday

• We find that these users generally shop less on Mondays and Tuesdays, with sudden peak on Wednesday, which slowly
declines over the weekend

• We also note that these users usually shop mostly from late evening to midnight
TV Ads
Analysis
TV Ads- KEY FINDINGS | Our competitor has 60% of ad share, with more ads at time when we see our
peak sale

No. of Ads shown Advertiser

No of Ads shown
2000
1800
39.39% 1600
1400
Advertiser 1200
Competitor 1000
800
600
60.61% 400
200
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Time of day

Competitor
No of Ads Shown
2000
1800
1600
1400
1200
1000
800
600
400
200
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Time of Day
Finding on next slide
TV Ads - KEY FINDINGS | CNTD.

• We observe that our competitor has more share of ads shown compared to our client

• We also note that our client has ads more evenly distributed across the day, where as our client targets the ads when the
sales are at maximum

• Insight 1: We can form a hypothesis that, people see ads of our competitor and after doing price comparison on our site,
they proceed to make purchase from us.

• To test the above hypothesis, we might need more data points such as, how many users who see competitor’s ads are
coming to our site

• Insight 2: We can determine the relevance of our channels where our Ads are shown by doing flow check and determining
though which channels most of our users arrive from
Customer
Segmentation
CUSTOMER SEGMENTATION | RFM Analysis

High

Promising
(More targeted Ads) Loyal

Average spend/
Customer

Sleepers Drifting

Low

Low Order Frequency High

• We can divide our users into 4 base segments:

• Loyal: Not much attention is required here
• Promising: These users are spending more, but their frequency can be increased by targeting them with ads
• Drifting: These customers are placing order but aren’t purchasing high value products, we need to analyze them, as it
could be because of economic status or they are getting better deals elsewhere
• Sleepers: These users aren’t spending or ordering much, these people can be broken into lower chunks and one with
better economic status can be targeted
RECOMMENDATIONS

• The Advertiser need to make following changes in its marketing strategy:

• Schedule Ad timings towards when users are expected to purchase

• As more than 90% of sale happen in just 4 provinces, they should keep larger chunk of their Ad Spend for these regions

• We need to check the channel users use, to get better understanding of our marketing channel and campaign effectiveness

• We also need to trace how many users interact with competitor ads before coming to our platform

• We can check the effectiveness of the Ad channels by looking into their CTR and conversions
Thank You