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Analysis of the Impact of Advertising on Internal Traffic

Student: Grigorian Artem

Supervisor: Tamara Voznesenskaya

Faculty: Faculty of Computer Science

Educational Programme: Data Science and Business Analytics (Bachelor)

Year of Graduation: 2024

In the contemporary digital landscape, advertising extends beyond brand promotion to become a crucial revenue generator. This study investigates the impact of advertising on internal traffic within a prominent Russian delivery service platform. Utilizing a comprehensive A/B testing framework, the research examines how different advertising strategies affect user engagement and platform performance. The research is done in a robust methodological approach that integrates quantitative data analysis and financial assessment. By employing A/B testing, key metrics such as conversion rates and Gross Merchandise Value (GMV) are analysed to determine the effectiveness of various advertising placements. The study also uses the Minimum Detectable Effect (MDE) to ensure the reliability of results. Moreover, the research incorporates financial analysis to evaluate the net revenue impact of advertising placements. This general approach allows the identification of profitable advertising strategies while justifying potential negative effects on user engagement. The findings offer actionable recommendations for digital marketers aiming to enhance advertising effectiveness and internal traffic management. The developed methodology serves as a valuable tool for businesses to make data-driven decisions, optimize their advertising investments, and improve overall platform performance. This study contributes to the academic discourse on digital marketing and consumer behaviour, presenting a detailed analysis of advertising's operational values. It underscores the importance of strategic advertising placements and provides a framework for future research in optimizing digital marketing strategies.

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