AdVantage Company
Executive Summary
This report provides statistical evaluation on designers’ productivity and a niche social media for placing ads. The result founds that:
94.87% of all ads achieved at least 3% click-through rate which is insufficient to satisfy the AdVantage’s objective
Differences in designers’ performance can be explained by designers’ dominance which is influenced by the frequency of performing specific type of advertisement
There is enough evidence to conclude that there is a weak relationship between placement and click-through rate.
Introduction
The purpose of this report is to analyse data recorded by AdVantage and then evaluate designers’ productivity in the last six months with a focus on click-through rate. In addition, this report will also examine the relationship between where the ads appears and click-through rate.
The given information was collected through a sample of 293 advertisements published in the last six month. The key variables used in this report are click-through rate, placement and product.
Assessing designers’ productivity
Designers’ productivity is measured as at least 3% click-through rate. To have an overview of how click-through rate of ads are distributed in the last six month, a frequency distribution would be employed. Through frequency distribution table, a histogram can be constructed indicating the skewness of click-through rate.
Figure 1: Frequency distribution of click-through rate
Bin
Frequency
Relative frequency %
0% ≤ rate < 1%
1
0.34%
1% ≤ rate < 2%
1
0.34%
2% ≤ rate < 3%
13
4.44%
3% ≤ rate < 4%
32
10.92%
4% ≤ rate < 5%
215
73.38%
5% ≤ rate < 6%
9
3.07%
6% ≤ rate < 7%
17
5.80%
7% ≤ rate < 8%
2
0.68%
Rate ≤ 8%
3
1.02%
Figure 2 Histogram of click-through rate
As seen in figure 2, the distribution of click-through rate is negatively skewed showing that the majority of ads achieved at least 3% click through rate. This skewed is elaborated by