UCLA

With the rising use of technology, online advertising has become an effective tool for manybusinesses. This research paper explores the different factors of digital ads and its effect on ad clicks. The full 2k factorial experimental design provides a better understanding on which factors can optimize CTR (clickthrough rate) and CPC (cost per click). This experiment was designed with new e-commerce entrepreneurs in mind to build a starting knowledge of digital ads based on statistical procedures and results. While there were capital limitations and minimal brand awareness, the experiment still showed actionable results that can drive future business decisions.