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Opendoor Display PSA testing for strategic budget allocation

Opendoor: Display PSA testing for strategic budget allocation 2

CLIENTOpendoor is a fast-growing startup that streamlines the home buying and selling experience online. The company aims to reduce the associated uncertainty and risk of this process by sending offers within 48 hours and handling all repairs, listings, and showings. In 2018 alone, Opendoor has grown exponentially and is now live in thirteen markets throughout the United States.

CHALLENGEOpendoor is disrupting the long-standing real estate industry. Breaking into existing markets is incredibly challenging; selling a home through a service like Opendoor is an entirely new concept. Because of the high emotional and financial impacts for their seller, a level of trust needs to be achieved to acquire new customers, and it was pivotal for Opendoor to focus on audiences that were willing to take a chance on their service. This is where the 3Q Display team came in.

Opendoor began working with the 3Q Display team in 2017 and quickly launched several display and video campaigns. Much of the performance of these campaigns relied on view-through conversions, though Opendoor had traditionally only attributed click-through conversions towards their overall CPA. The 3Q team knew they

needed to upgrade the overall attribution strategy to understand the true effectiveness of these campaigns on target metrics and to reallocate budget as the findings dictated.

SOLUTIONIn order to test how much incrementality could be attributed to view-through conversions, we decided to run a PSA (Public Service Announcement) test. A PSA test runs both exposed and control ads to the same audience. The exposed audience was served Opendoor ads while the control audience received an ad from a non-profit organization, such as the American Red Cross or St. Jude’s. By splitting the audience into completely separate segments that would only see either the PSA or Opendoor’s ad, the team could determine the true lift in performance of Opendoor’s ad.

3Q ran the PSA test in Opendoor’s legacy markets as well as some other newly expanded markets. The campaigns were set up like so:

• The exposed audience receiving Opendoor ads: 80%

• The Control Audience receiving non-profit ads: 20%

Opendoor: Display PSA testing for strategic budget allocation 3

RESULTSIn the end, the test revealed that over 20% of view-through conversions are incremental to Opendoor’s overall performance KPI. This has allowed the team to attribute over 20% of view-through conversions to overall performance. By using view-through conversions in measurement to the greater KPI (qualified leads) the Display team was able to optimize more effectively by looking at additional performance metric, and gave the client more confidence overall in where to allocate budget.

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