A charity website collects donations for cancer research. They are considering a Stories ad on Facebook where they will pay $12.47 CPM. They expect a CTR 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 for this campaign?

b. [1 pt] Should the charity buy the ads?