Based on how well a campaign’s target audience is familiar with the product/brand, marketing campaigns can be roughly divided into two groups:
- Acquisition campaigns – targeting potential customers with no prior interactions with the brand,
- Retargeting campaigns – targeting people who are already familiar with the brand to some extent.
In most cases, retargeting campaigns outperform the acquisition campaigns in terms of customer acquisition cost (referred to as CAC), as the audience of retargeting campaigns is by definition more familiar with the brand and its products. So if we compare acquisition and retargeting campaigns solely based on their respective CAC figures, retargeting campaigns always win. On the other hand, it could be argued that acquisition campaigns serve a different purpose than just bringing conversions; they also raise brand awareness. In this article, we would like to see if there is a way to test whether or not acquisition campaigns increase brand awareness, and if so, how to measure the effect.
We start by formalising the problem, after which we present some relevant theory needed in order to analyze the data. After this exposition, we link to a Google Sheet document where the theory is implemented on some sample data. This Google Sheet document is ready to be used on new data, so feel free to explore with your own campaign performance data from Facebook, Google or any other channel. Information about how to use the document and how to interpret the results is included in the document itself.
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