Multivariate landing page optimization
Encyclopedia
Multivariate landing page optimization (MVLPO) is a specific form of landing page optimization
where multiple variations of visual elements (e.g., graphics, text) on a webpage are evaluated. For example, a given page may have k choices for the title, m choices for the featured image or graphic, and n choices for the company logo. This example yields k×m×n landing page configurations.
The first application of an experimental design for MVLPO was performed by Moskowitz Jacobs Inc. in 1998 as a simulation/demonstration project for LEGO
. MVLPO did not become a mainstream approach until 2003 or 2004.
Multivariate landing page optimization can be executed in a live (production) environment, or through simulations and market research
surveys.
, conjoint analysis
, Taguchi methods
, IDDEA
, etc.), which tests a structured combination of webpage elements. Some vendors (e.g., Memetrics.com) use a "full factorial" approach, which tests all possible combinations of elements. This approach requires a smaller sample size—typically, many thousands—than traditional fractional Taguchi designs to achieve statistical significance
. This quality is one reason that choice modeling won the Nobel Prize
in 2000. Fractional designs typically used in simulation environments require the testing of small subsets of possible combinations, and have a higher margin of error
. Some critics of the approach question the possible interactions between the elements of the webpages, and the inability of most fractional designs to address this issue.
To resolve the limitations of fractional designs, an advanced simulation method based on the Rule Developing Experimentation (RDE) paradigm was introduced. RDE creates individual models for each respondent, discovers any and all synergies and suppressions among the elements, uncovers attitudinal segmentation, and allows for databasing across tests and over time.
, time spent on the page, etc. Once sufficient data has accumulated, the system estimates the impact of individual components on the target measurement (e.g., conversion rate).
Live environment execution has the following advantages:
Live environment execution has the following disadvantages:
techniques. In the research phase, the respondents are directed to a survey that presents them with a set of experimentally-designed combinations of a landing page. The respondents rate each version based on some factor (e.g., purchase intent). At the end of the research phase, regression analysis
models are created either for individual pages or for the entire panel of pages. The outcome relates the presence or absence of page elements on the different landing page executions to the respondents’ ratings. These results can be used to synthesize new landing pages as combinations of the top-scoring elements optimized for subgroups or market segments, with or without interactions.
Simulation execution has the following advantages:
Simulation execution has the following disadvantages:
Landing page optimization
Landing page optimization is one part of a broader Internet marketing process called conversion optimization, or Conversion Rate Optimization , with the goal of improving the percentage of visitors to the website that become sales leads and customers. A landing page is a webpage that is displayed...
where multiple variations of visual elements (e.g., graphics, text) on a webpage are evaluated. For example, a given page may have k choices for the title, m choices for the featured image or graphic, and n choices for the company logo. This example yields k×m×n landing page configurations.
The first application of an experimental design for MVLPO was performed by Moskowitz Jacobs Inc. in 1998 as a simulation/demonstration project for LEGO
Lego
Lego is a line of construction toys manufactured by the Lego Group, a privately held company based in Billund, Denmark. The company's flagship product, Lego, consists of colorful interlocking plastic bricks and an accompanying array of gears, minifigures and various other parts...
. MVLPO did not become a mainstream approach until 2003 or 2004.
Multivariate landing page optimization can be executed in a live (production) environment, or through simulations and market research
Market research
Market research is any organized effort to gather information about markets or customers. It is a very important component of business strategy...
surveys.
Overview
Multivariate landing page optimization is based on experimental design (e.g., discrete choiceDiscrete choice
In economics, discrete choice problems involve choices between two or more discrete alternatives, such as entering or not entering the labor market, or choosing between modes of transport. Such choices contrast with standard consumption models in which the quantity of each good consumed is assumed...
, conjoint analysis
Conjoint analysis
Conjoint analysis, also called multi-attribute compositional models or stated preference analysis, is a statistical technique that originated in mathematical psychology. Today it is used in many of the social sciences and applied sciences including marketing, product management, and operations...
, Taguchi methods
Taguchi methods
Taguchi methods are statistical methods developed by Genichi Taguchi to improve the quality of manufactured goods, and more recently also applied to, engineering, biotechnology, marketing and advertising...
, IDDEA
IDDEA
IDDEA is a quantitative method used in market research. This method involves generating and presenting a number of design alternatives to persons who are participating in the design, selection, or market research exercise.The participants transmit data indicative of their preferences among or...
, etc.), which tests a structured combination of webpage elements. Some vendors (e.g., Memetrics.com) use a "full factorial" approach, which tests all possible combinations of elements. This approach requires a smaller sample size—typically, many thousands—than traditional fractional Taguchi designs to achieve statistical significance
Statistical significance
In statistics, a result is called statistically significant if it is unlikely to have occurred by chance. The phrase test of significance was coined by Ronald Fisher....
. This quality is one reason that choice modeling won the Nobel Prize
Nobel Prize
The Nobel Prizes are annual international awards bestowed by Scandinavian committees in recognition of cultural and scientific advances. The will of the Swedish chemist Alfred Nobel, the inventor of dynamite, established the prizes in 1895...
in 2000. Fractional designs typically used in simulation environments require the testing of small subsets of possible combinations, and have a higher margin of error
Margin of error
The margin of error is a statistic expressing the amount of random sampling error in a survey's results. The larger the margin of error, the less faith one should have that the poll's reported results are close to the "true" figures; that is, the figures for the whole population...
. Some critics of the approach question the possible interactions between the elements of the webpages, and the inability of most fractional designs to address this issue.
To resolve the limitations of fractional designs, an advanced simulation method based on the Rule Developing Experimentation (RDE) paradigm was introduced. RDE creates individual models for each respondent, discovers any and all synergies and suppressions among the elements, uncovers attitudinal segmentation, and allows for databasing across tests and over time.
Live environment execution
In live environment MVLPO execution, a special tool makes dynamic changes to a page so that visitors are directed to different executions of landing pages created according to an experimental design. The system keeps track of the visitors and their behavior—including their conversion rateConversion rate
In internet marketing, conversion rate is the ratio of visitors who convert casual content views or website visits into desired actions based on subtle or direct requests from marketers, advertisers, and content creators...
, time spent on the page, etc. Once sufficient data has accumulated, the system estimates the impact of individual components on the target measurement (e.g., conversion rate).
Live environment execution has the following advantages:
- Capable of testing the effect of variations as a real-life experience
- Generally transparent to visitors
- Relatively simple and inexpensive to execute
Live environment execution has the following disadvantages:
- High cost
- Increased complexity involved in modifying a production-level website
- Long period of time required to achieve statistically-reliable data. This situation is due to variations in the amount of traffic that generates the data necessary for a decision.
- Likely inappropriate for low-traffic, high-importance websites when the site administrators do not want to lose any potential customers
Simulation (survey) execution
In simulation (survey) MVLPO execution, the foundation consists of advanced market researchMarket research
Market research is any organized effort to gather information about markets or customers. It is a very important component of business strategy...
techniques. In the research phase, the respondents are directed to a survey that presents them with a set of experimentally-designed combinations of a landing page. The respondents rate each version based on some factor (e.g., purchase intent). At the end of the research phase, regression analysis
Regression analysis
In statistics, regression analysis includes many techniques for modeling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables...
models are created either for individual pages or for the entire panel of pages. The outcome relates the presence or absence of page elements on the different landing page executions to the respondents’ ratings. These results can be used to synthesize new landing pages as combinations of the top-scoring elements optimized for subgroups or market segments, with or without interactions.
Simulation execution has the following advantages:
- Faster and easier to prepare and execute in many cases, as compared to live environment execution
- Applicable to low-traffic websites
- Capable of producing more robust and rich data because of increased control over the page design
Simulation execution has the following disadvantages:
- Possible bias because of a simulated environment rather than a live environment.
- Necessity to recruit and optionally incentivize the respondents