Question
Background Information Impressions are the number of instances that an online advertisement is displayed to a user. Clicks are instances of someone clicking on the
Background InformationImpressions are the number of instances that an online advertisement is displayed to a user.
Clicks are instances of someone clicking on the displayed advertisement.(Only a fraction of impressions result in clicks.)Orders are instances of someone making a purchase after clicking on the advertisement.(Only a fraction of clicks result in orders.)For Facebook ads, users are targeted based on any number of characteristics, including their interests, age, device, and location.Facebook ads can be placed in several locations within Facebook depending on device. Two common placements are in-newsfeed ads and side column ads.Facebook ads are made up of one or many images with a headline, message, and call to action button.Together, this unique set of images and copy are called a creative. The same creative can be used for multiple different ads in different placements. ScenarioYou are determining how various Facebook ads performed.A two week test was set up where ads were made on two different placements.After the first week, each placement was updated with new creative with more emphasis on "buy now."The goal is to always maximize profit, which can be estimated by total revenue less the advertising cost.The data is in the table below and you can assume it was accurately recorded.Desktop Right Column (BEFORE new creative)Desktop Right Column (AFTER new creative)Mobile Feed (BEFORE new creative)Mobile Feed (AFTER new creative)ImpressionsClicksCostOrdersImpressionsClicksCostOrdersImpressionsClicksCostOrdersImpressionsClicksCostOrders1/14/1942,1984,301$8,67226754,3895,258$10,3722971/15/1937,1624,216$9,83424549,5755,327$9,2632341/16/1941,9224,386$8,13630456,6035,838$9,8264131/17/1931,0093,499$9,29127345,0236,429$10,2735211/18/1934,5153,318$7,45924844,1565,357$9,3632931/19/1944,1745,157$10,81839269,7205,422$7,7504371/20/1933,9034,824$8,21531258,5775,678$10,3743461/21/1941,8914,145$8,47624555,9385,324$6,8273531/22/1938,2164,367$9,82228945,7254,872$7,3844071/23/1942,2925,132$8,03234558,6014,528$8,9373001/24/1932,1914,127$7,34724262,3124,472$9,2733971/25/1935,1713,169$9,61631751,3865,673$8,7863851/26/1942,0444,730$9,77826346,7255,189$8,3653961/27/1931,2683,258$8,62031557,3784,051$7,379320Totals264,88329,701$62,4252,041263,07328,928$61,6912,016378,04339,309$67,2212,541378,06534,109$56,9512,558QuestionsPlease show all your analysis, and specify any assumptions you make.A) For both placements, Right Column and Mobile Feed, please calculate the clickthrough rate and the conversion rate. CTRConversion RateRight ColumnMobile FeedB) For both the old and new creatives, please calculate the clickthrough rate and the conversion rate.CTRConversion RateOld CreativeNew CreativeC) In order to communicate ad performance, we want to make a display table of cost per order by both placement and creative, so we can see the effects of either or both. Please table which shows this.D) Which website placement would you say is best overall, Mobile Feed or Right Column? Explain.E) Which creative combination would you say is best overall, the old or the new? Explain.F) Does the choice of placement seem to change the effectiveness of the new creative? Why? Explain the implications of your answer.
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