A company ran a search ad with Google to promote the sale of a product with a margin of $$50.$ The cost of the campaign was $$100,000$ and the ad yielded $1,500,000$ impressions. Of those, $75,000$ individual clicked on the search ad and of those $1,500$ made a purchase.

What is the reach of this ad$?$

What is the CTR$?$

Conversion rate?

How much did it cost the firm per click?

What is the ad profit?

Calculate the ROI. Was this a good investment for the firm?

A firm invested in banner advertising on a popular website for a new product. This product sells for $$85$ and has a variable cost of $$45$ per unit. The campaign investment was $$200,000$ and the number of impressions realized from the ad were $4,000,000.280,000$ clicked on the ad and this yielded $7,000$ purchases.

What is the reach of this ad$?$

What is the CTR$?$

Conversion rate?

How much did it cost the firm per click?

What is the ad profit?

Calculate the ROI. Was this a good investment for the firm?