Question
Estimated Clicks Lost Conversion Rate Average Order Value (Revenue) Average CPC (Cost Per Click) Campaign 1 120,000 1.20% $600 $3.50 Campaign 2 100,000 0.50% $800
Estimated Clicks Lost | Conversion Rate | Average Order Value (Revenue) | Average CPC (Cost Per Click) | |
Campaign 1 | 120,000 | 1.20% | $600 | $3.50 |
Campaign 2 | 100,000 | 0.50% | $800 | $4.25 |
Hint: You will need to calculate: Conversions Lost, Revenue Lost, Estimated Cost, and Return on Ad Spend (ROAS).
ROAS=Revenue Lost/Estimated Cost
BONUS: Is their estimated increase in advertising budget at an optimal level (i.e. should it be increased or decreased)? Please explain why or why not.
The Wahoo Inc. CMO has agreed to increase the advertising budget by 10% the following quarter. Currently, their advertising budget is $1,200,000. She is looking for your guidance as to which advertising campaign to focus on. Based on the data chart below, which advertising platform would you recommend? Please explain why or why not.
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