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A company called E-Shop.com conducted A/B testing to evaluate the effectiveness of the search engine ads. More specifically, consumers who searched the keywords E-Shop are

A company called E-Shop.com conducted A/B testing to evaluate the effectiveness of the search engine ads. More specifically, consumers who searched the keywords "E-Shop" are randomly assigned into two groups based on their IP address:

 the paid link appears on the top of the search results. When the potential customer clicks the sponsored link of E-Shop.com, E-Shop.com has to pay 0.6toGoogleperclick.Afteramonth,EShop.comfoundthattheNoAdsgroupcontribute1 million in gross profit.

In the Ads group, 600,000 consumers clicked the paid link. Once the customer lands on E-Shop.com, the probability of making a purchase is 10%. On average, E-Shop gets $20 profit per customer from the goods sold when the customer makes a purchase.


What is the estimated marketing return on investment (MROI) of conducting search engine ads on Google?

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