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ab_testing_max_vs_avg_bidding's Introduction

AB_testing_max_vs_avg_bidding

AB testing of maximum bidding and average bidding feature of Facebook ads for profits

Facebook has recently introduced a new bidding feature called average bidding alongside their already existing feature maximum bidding. Bombabomba.com one of our customers decided to test this feature. They want to run an A/B test to understant which one would convert more and bring more profits.

Variables

Impression: Ad views.

Clicks: Indicates the number of clicks on the displayed ad.

Purchases: Indicates the number of products purchased after the ads clicked.

Earning: Earnings after purchased products.

Project Tasks

Task1: Define the hypothesis of the A/B test.

Task2: Comment on whether the test results are statistically significant.

Task3: Which tests did you use? State your reasons.

Task4: Based on your answer in Task 2, what is your advice?

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