Powershop

Utilising mathematical modelling to determine the cost effectiveness of offers vs. media CPAs.

30%

CPA of acquisition falling PoP

Challenge

Powershop often ran promotional offers in order to increase sales during key promotional periods. However, the relationship between sales uplift and offer wasn’t well understood. Nor was it understood if the cost of the offer outweighed the increased media efficiencies driven by having an offer in market.

What we did

Magic developed a hypothesis that an offer had a considerably lower effective CPA vs. running media; and that smaller discounts had a proportionally larger impact than larger discounts. To quantify this Magic ran a series of models to determine the specific effective CPA of various offers and compared this to the modelled cost of acquisition via media alone.

Outcome

The findings were that both hypotheses were true and the client increased the frequency of sales but reduced the overall discount level of each.

Resulting in effective CPA falling 30% PoP

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Business leverages mathematical models

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Discover the latest opportunities in your marketing ecosystem.

Our free marketing and digital audit checks for best practices and identifies any wastage or missed strategic opportunities across your entire ecosystem.

Our audits examine if your:

Performance channels adhere to best practices

Creative drives attention and action

Analytics, tagging and technical infrastructure are set up to drive success across your business

Business is given the insights and data it needs to make decisions

Business leverages mathematical models

Request audit

Request audit

Discover the latest opportunities in your marketing ecosystem.

Our free marketing and digital audit checks for best practices and identifies any wastage or missed strategic opportunities across your entire ecosystem.

Our audits examine if your:

Performance channels adhere to best practices

Creative drives attention and action

Analytics, tagging and technical infrastructure are set up to drive success across your business

Business is given the insights and data it needs to make decisions

Business leverages mathematical models

Request audit

Other applied Mediamatics ™

Contact us

Whatever your biggest challenge, Magic can help.

If Magic and Mediamatics™ aligns with your values, we would like to know more about you.

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Magic pays respect to the elders past and present and extend that respect to all Aboriginal and Torres Strait Island peoples today.

2024 Magic Agency Pty Ltd ©

Contact us

Whatever your biggest challenge, Magic can help.

If Magic and Mediamatics™ aligns with your values, we would like to know more about you.

Melbourne

1/105 Dover St, Cremorne, 3121, VIC

London

‍Ebor Street, London, E1 6AW

Los Angeles

73 Market Street, Venice Beach 90291 CA

Magic pays respect to the elders past and present and extend that respect to all Aboriginal and Torres Strait Island peoples today.

2024 Magic Agency Pty Ltd ©

Contact us

Whatever your biggest challenge, Magic can help.

If Magic and Mediamatics™ aligns with your values, we would like to know more about you.

Melbourne

1/105 Dover St, Cremorne, 3121, VIC

London

‍Ebor Street, London, E1 6AW

Los Angeles

73 Market Street, Venice Beach 90291 CA

Magic pays respect to the elders past and present and extend that respect to all Aboriginal and Torres Strait Island peoples today.

2024 Magic Agency Pty Ltd ©