A-B Split

AAA

DEFINITION of 'A-B Split'

A method of testing the effectiveness of marketing methods or media. Using A-B split marketing, a list of target names is split into two groups on a random basis, with one group designated as a control group and the other as a test group. The objective of the A-B split is to determine which single variable is the most effective in improving response rates to a marketing campaign or achieving some other desired outcome.

INVESTOPEDIA EXPLAINS 'A-B Split'

A-B split has been been used for mailing campaigns in the past, but has also successfully adapted for use in interactive media, for testing the effectiveness of e-mail blasts and banner advertisements.


For example, an email campaign by a newsletter publisher may include a specific "call to action" - such as subscribe within 48 hours to receive a 20% discount - embedded in the message to half the target audience, and no call to action (i.e. no solicitation to subscribe or mention of a discount) in the message to the other half. This will enable the publisher to determine if the "call to action" really works, and whether the response rate is good enough to justify the 20% discount.

RELATED TERMS
  1. Tailored Advertising

    Marketing and advertising campaigns that place emphasis on the ...
  2. Direct Marketing

    A form of advertising in which physical marketing materials are ...
  3. Marketing Campaign

    Specific activities designed to promote a product, service or ...
  4. Click-Through Rate (CTR)

    The percentage of individuals viewing a web page who click on ...
  5. Banner Advertising

    A rectangular graphic display that stretches across the top or ...
  6. Viral Marketing

    Internet advertising or marketing that spreads exponentially ...
Related Articles
  1. Public Relations: Offering Businesses ...
    Entrepreneurship

    Public Relations: Offering Businesses ...

  2. Variety A Bitter Spice For Investors
    Options & Futures

    Variety A Bitter Spice For Investors

  3. The Marketing Director's Pitch
    Professionals

    The Marketing Director's Pitch

  4. Small Business: It's All About Relationships
    Entrepreneurship

    Small Business: It's All About Relationships

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center