A/B Testing Standard Operating Procedure (SOP)

A/B tests (also known as split tests) are the cornerstone of any successful Google Ads strategy. They empower you to make data-driven decisions by testing different elements of your ads, ad groups, or campaigns against each other. This SOP will guide you through the entire process, from planning to analysis, and provide valuable tips and tricks to get the most out of your tests.

Planning and Preparation

  • Objective: Define clearly and precisely what you want to achieve with the test. Do you want to increase the click-through rate (CTR), improve the conversion rate, or reduce the cost per conversion? A clear objective will help you select the right metrics and interpret the results.
  • Hypothesis: Formulate a hypothesis that you want to test. For example: “If I change the headline of my ad, the click-through rate will increase.”
  • Selection of Test Variables: Decide which elements you want to test. These can be ad headlines, descriptions, ad extensions, landing pages, bids, target audiences, or even different campaign settings.
  • Test Duration and Sample Size: Determine how long the test should run and how many impressions or clicks you need to achieve statistically significant results. Tools like the Google Ads Experiment Planner can help you with this.
  • Control Group: Create a control group that represents the unchanged version of your ad or campaign. This is the benchmark against which you will measure the performance of the test variant(s).

Setting up the Test

  • Test Environment: Use the Google Ads experiment feature to create and manage your tests. This allows for a clean separation between the control and test group and facilitates the evaluation of the results.
  • Random Distribution: Ensure that the ads or campaigns in the control and test group are randomly distributed to users to avoid bias.
  • Tracking and Measurement: Implement conversion tracking to capture the desired actions (e.g., purchases, sign-ups). Use UTM parameters to differentiate traffic from different test variants.

Execution and Monitoring

  • Start of the Test: Once everything is set up, start the test and let it run for the specified duration.
  • Regular Review: Monitor the performance of the control and test group(s) regularly. Look for significant changes in the key metrics.
  • Adjustments: If necessary, make minor adjustments during the test to ensure that everything runs smoothly. However, avoid major changes that could distort the results.

Analysis and Decision Making

Statistical Significance: Use statistical tests to determine whether the observed differences between the control and test group are random or due to the tested variables.

Chi-Squared Test: 

Imagine you have tested two ads: Ad A (control group) and Ad B (test group). After a week, you have collected the following results:

  • Ad A: 1000 impressions, 50 clicks (CTR 5%)
  • Ad B: 1200 impressions, 72 clicks (CTR 6%) of

Question: Is the higher click-through rate of Ad B statistically significant or could it be due to chance?

The Chi-Squared test helps you answer this question. It compares the actual results of your test with the results you would expect if there were no difference between the tested variants.
In this example, the test would show that the difference in click-through rates between Ad A and B is likely due to chance and is not statistically significant.

  • Interpretation of Results: Analyse the data carefully and draw conclusions, taking into account the statistical analysis (e.g., Chi-Squared test). Which variant performed better? What insights can you gain from this?
  • Decision Making: Make data-driven decisions based on the test results and the statistical analysis. Implement the most successful variant or conduct further tests to deepen your insights.
  • Documentation: Document your tests carefully, including the objective, hypothesis, test variables, results, and conclusions. This will help you learn from your experiences and improve future tests.

Tips and Tricks for Successful A/B Tests

  • Test one variable at a time: To get clear results, you should only test one variable at a time. If you change multiple variables simultaneously, you cannot determine which change is responsible for the observed effects.
  • Be patient: A/B tests take time to deliver statistically significant results. Let the test run long enough before drawing hasty conclusions.
  • Test continuously: A/B testing is an ongoing process. Regularly test new ideas and continuously optimise your campaigns.
  • Use tools and resources: There are many helpful tools and resources that can assist you in conducting and analyzing A/B tests. We go further into that for the different platforms. 

Platform-Specific Tips

Google Ads

  • Google Ads Experiment Planner: Helps determine the required sample size and test duration.
  • Online Chi-Squared Calculator: Simplifies the calculation of the Chi-Squared value and p-values.
  • Statistical software (e.g., Excel): Enables more complex statistical analyses.

Microsoft

  • Microsoft Ads Experiments Planner: Helps estimate required sample size and test duration.
  • Online Chi-Squared Calculator: Simplifies the calculation of Chi-Squared values and p-values.
  • Statistical software (e.g. Excel, R, SPSS): Enables more advanced statistical analysis.

Facebook/Instagram:

  • Access A/B Testing: Within Ads Manager, navigate to the campaign or ad set level. Look for the “Experiments” or “A/B Test” option, usually located in the top menu or within the ad creation flow.
  • Test Creation: Select the “Create Split Test” or “A/B Test” option. Choose the variable you want to test (e.g., creative, audience, placement, delivery optimization).
  • Configure Test: Specify the test duration, audience split (percentage of audience seeing each variant), and budget allocation. Ensure even distribution across variants.
  • Monitor and Analyze: Track performance metrics within Ads Manager and use the built-in reporting tools to analyze results. Facebook provides statistical significance calculations to help interpret the data.

TikTok:

  • Access A/B Testing: Within TikTok Ads Manager, go to the campaign level and look for the “A/B Test” option, typically found in the campaign creation or editing process.
  • Test Creation: Select the “Create A/B Test” option. Choose the variable you want to test (e.g., creative, audience, placement).
  • Configure Test: Define the test duration, audience split, and budget allocation. TikTok recommends a minimum test duration of 3-7 days for reliable results.
  • Monitor and Analyze: Track performance metrics within TikTok Ads Manager and use the reporting tools to analyze results. TikTok provides insights into the winning variant and statistical significance.

LinkedIn:

  • Access A/B Testing: Within LinkedIn Campaign Manager, navigate to the campaign level. Look for the “Create Campaign” button and select the “A/B Test” option.
  • Test Creation: Choose the type of A/B test you want to run (e.g., creative, audience, landing page).
  • Configure Test: Specify the test duration, audience split, and budget allocation. LinkedIn recommends a minimum test duration of 2 weeks for statistically significant results.
  • Monitor and Analyze: Track performance metrics within Campaign Manager and use the reporting tools to analyze results. LinkedIn provides insights into the winning variant and statistical significance.

General Tips for All Platforms:

  • Start with clear hypotheses: Clearly define what you want to test and what you expect the outcome to be.
  • Test one variable at a time: Isolate variables to get clear and actionable results.
  • Ensure sufficient sample size: Allocate enough budget and time to reach a statistically significant audience size.
  • Monitor regularly: Keep a close eye on performance metrics throughout the test duration.
  • Analyze and implement: Use the platform’s reporting and analytics tools to interpret the results and implement the winning variant

Conclusion

A/B tests are an indispensable tool for any advertiser. By systematically testing different elements of your campaigns and using statistical methods like the Chi-Squared test, you can make data-driven decisions, improve the performance of your ads, and achieve your marketing goals. This SOP provides you with a solid foundation for conducting successful A/B tests.

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