Linking Watch Time to Profit
I analyzed ad and sales data and found that the channel bringing in the fewest customers produced the longest ad watch time and the strongest purchasing power. I projected a revenue lift if marketing was targeted to this demographic.
Skills Used:
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Market and Demographic Analysis
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Advertisment Analytics
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Conversion Rate Analysis
Context and Research Goals
Acquisition volume is often the default measure of a marketing channel's value. The channel bringing in the most customers looks like the channel worth the most investment. I was asked to test that assumption and find a better predictor of return. I found that ad watch time beat acquisition volume. How long someone watched a video ad predicted strong purchasing power, and I used that signal to identify a new, high-value demographic.
Methods
I combined two data sources: ad platform analytics, which captured how long users watched a 3-minute video ad, and sales data, which captured both initial and repeat purchases. I first compared ad watch time and purchasing behavior across channels. This allowed me to distinguish customers who were more engaged and more likely to purchase.
I then determined whether ad watch time predicted greater purchasing power, while accounting for differences across acquisition channels. This analysis allowed me to identify customers who engaged the most with ads and showed the strongest purchasing power.
Project Impact
One channel brought in the fewest customers, but those customers watched the ad the longest and outperformed every other channel on both immediate and repeat purchase profit. Based on this relationship, I projected around a 25% revenue lift if the next promotional cycle shifted focus to this demographic.
Insights
Acquisition volume and customer value pulled in opposite directions. The channel that looked weakest by headcount pulled in the highest-spending customers. Instead of acquisition volume, ad watch time proved a better indicator of customer value. The same customers who watched the ad the longest were also more likely to come back and buy again. That distinction matters for how a company should interpret ad engagement data: watch time can serve as a strong signal of a demographic that is likely to show the best return on investment.