Question
A charity website collects donations for cancer research. They are considering a Stories ad on Facebook where they will pay $12.47 CPM (Click per thousand
A charity website collects donations for cancer research. They are considering a Stories ad on Facebook where they will pay $12.47 CPM (Click per thousand impressions). They expect a CTR (Click through rate) for the ad of 1.2%. Users who click on the ad will get sent to the charitys Facebook page. Of those users, 5% are expected to click a link to the charitys website. About 10% of people who make it to the website make a donation and the average donation amount is $50.
a. [6 pts] What is the ROI (return on investment) for this campaign?
b. [1 pt] Should the charity buy the ads?
c. [2 pts] To make a donation, users have to see the ad, click on it to go to the charitys Facebook page, find the link to the charitys website, find the donation form and then fill it out and submit it. What creative ideas do you have to improve this process for the user so that more people make a donation?
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