Discuss the experimental design issues outlined in the case: a. What are the steps involved in running a targeted display ad campaign? b. What are the proper ways to set up a randomized experiment to measure the effectiveness of a campaign? Then answer the following four questions pertaining to the results: 1. Was the advertising campaign successful? Did additional consumers convert because of the campaign? (Hint: Compare the percent of converting users in the exposed (test) and control groups). 2. Was the campaign profitable? a. How much money did TaskaBella make by running the campaign (excluding advertising cost)? b. What was the cost of the campaign? C. Calculate the ROI (return on investment) of the campaign. Was the campaign profitable? d. What was the opportunity cost of including a control group; how much more could have TaskaBella made with a smaller control group or not having a control group at all? 3. How did the number of impressions seen by each user influence the effectiveness of advertising? I Create a chart of conversion rates as a function of the number of ads displayed to users. Plot conversion rates for those who were in the control group and for those who were exposed to the ad. Group together number of impressions as necessary to obtain a meaningful plot (i.e., plot conversion rates for users who saw 1-10, 11-20, 21-30, impressions). (Conversion rate means the percentage of unique users who made a purchase). b. What can you infer from the charts? In what range of impressions is advertising most effective? C. What do the above figures imply for the design of the next campaign assuming consumer response would be similar? . How does consumer response to advertising vary on different days of the week and at different times of the day? a. Create a chart with the conversion rates for the control group and the exposed group as function of the day of the week when they were shown the impressions. b. Create the same chart for hours within a day (excluding the period between midnight and 8am) C. What days hours is advertising most least effective