In a rare display of serious mathematics in advertising, Kowalick, Inc.’ James Kowalick introduced the Taguchi method of ad testing. The Taguchi method was first invented in the 1950 by a brilliant Japanese electronics engineer who later used it to propel Japanese car manufacturers to the forefront of the automotive industry.
In it’s simplest form, the Taguchi methods takes the grunt work and prolonged time out of testing using combinations and permutations of multiple variables in an ad campaign. For example, in an email campaign, the system can test thousands of variables such as subject line, text, price of offer, sender address and images. The method is automated through a software package that manages the pre-determined test variables and automatically determines the optimal combination of variables. The system has been proven to increase campaign success by hundreds to thousands of percent. This is certainly a bold claim but it has been proven many times and in this session, the success was demonstrated by a case study for a computer manufacturer who increase campaign response from 0.1 percent to 3.7 percent.
Currently, Kowalick is conducting an optimization case study for his own company which is using the Google AdWords program. Results are promised by summer.
