Experimentation PythonStatsmodels ScipyLogistic Regression

Marketing Ad vs PSA:
A Rigorous A/B Test
Analysis

Does replacing a public service announcement with a real marketing ad lift conversion? A full statistical analysis — hypothesis testing, confidence intervals, power analysis, and logistic regression — gives a definitive answer.

+0.77pp
Conversion Lift
Ad group vs PSA group
~1.0
Statistical Power
Well-powered experiment
0.69
Odds Ratio (PSA vs Ad)
PSA users 31% less likely to convert
96/4
Group Allocation Split
Atypical — flagged as limitation
01 · Experiment Design

The question, the groups, the hypothesis

Users were split into two groups: the ad group (treatment — sees marketing ad) and the psa group (control — sees public service announcement). The binary outcome is conversion. A one-sided test is used because the business question is directional: does the ad perform better?

H₀ — Null Hypothesis
The conversion rate of the ad group is less than or equal to the PSA group. The ad has no positive effect on conversion.
H₁ — Alternative Hypothesis
The conversion rate of the ad group is strictly greater than the PSA group. The ad drives real, measurable uplift.
⚠️ Limitation flagged: The experiment uses a 96%/4% allocation split (ad/PSA) — highly atypical for a standard A/B test. This may indicate an unequal design, a sample ratio mismatch, or a data collection issue. The analysis proceeds transparently with this constraint noted.
02 · Conversion Rate Comparison

The ad group clearly outperforms

Even before formal testing, the raw conversion rates show a consistent gap. The ad group converts at ~2.55% vs ~1.78% for the PSA group — an absolute difference of +0.77 percentage points.

Ad group: 2.55% conversion. PSA: 1.78%. A consistent 0.77pp lift across the full dataset.
TestTwo-proportion z-test (one-sided)
p-value<< 0.05 (highly significant)
95% CI (difference)+0.60% to +0.94%
Effect size+0.77 percentage points
Statistical power~1.0 (very high)
Odds ratio (PSA vs Ad)0.69 (31% lower odds)
ConclusionReject H₀ — Ad wins
The marketing ad produces a statistically significant uplift in conversion. The p-value is far below 0.05, the 95% confidence interval excludes zero (+0.60% to +0.94%), and statistical power is near-perfect. The effect is real, robust, and not explained by temporal confounds.
03 · Confidence Interval & Regression

The effect holds after controlling for time

A key concern: what if the ad group was shown content at more favourable times? Logistic regression controlled for day of week and hour of day simultaneously. The result: PSA group membership remains a negative, statistically significant predictor of conversion even after adjusting for these factors.

Non-overlapping confidence intervals confirm statistical significance. The ad group's higher rate is a reliable, repeatable finding.
OR = 0.69: PSA users convert at 69% the rate of ad users, all else equal. The dashed line at OR=1 represents no effect.
04 · When to Show Ads

Saturday mornings and weekend evenings win

A secondary analysis within the ad group reveals which day-hour combinations produce the highest conversion rates — directly actionable for campaign scheduling and budget allocation.

Saturday 5–6 AM and weekend evenings (7–9 PM) show peak conversion. Late-night slots (2–4 AM across all days) are consistently the weakest. Reallocating budget from dead zones to peak windows improves campaign ROI without additional spend.
05 · Recommendations

Deploy the ad — and schedule it smartly

ActionSupporting Insight
Deploy
Roll out the marketing ad at full scale
The evidence is robust across three independent analyses: z-test (p << 0.05), CI (+0.60% to +0.94% excluding zero), and logistic regression controlling for temporal factors. PSA users are 31% less likely to convert.
High Priority
Concentrate spend on weekend peak slots
Saturday 5–6 AM and weekend evenings (7–9 PM) outperform average conversion meaningfully. Shifting budget toward these windows increases returns without adding total spend.
High Priority
Eliminate budget in the 2–4 AM window
Late-night slots show consistently the lowest conversion rates across all days. Every dollar saved here can be reallocated to high-performing Saturday and weekend evening slots.
Future Experiments
Rebalance group allocation in next test
The 96/4 split limits statistical learning from the PSA group. A 50/50 or 80/20 split in future experiments would provide a cleaner, more statistically efficient comparison baseline.
Monitor
Track for novelty effects over time
The experiment covers one campaign window. Monitor conversion lift monthly post-deployment — as the ad becomes familiar, novelty-driven lift may diminish and creative refresh cycles should be planned accordingly.
Dataset · Kaggle Marketing A/B Testing 588,101 users · 2 groups ⬡ View on GitHub →
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