For this post, calculate budgeting decisions for pay$-$per$-$click social ads.

Answer each of the following scenarios:

A$.$ Calculate how many clicks the Budget will allow before it is exhausted

Budget $$1500$

Average Cost per click $($CPC$)$ $$3\mathrm{.}95$

B$.$ How much will the advertiser spend, if the budget is not capped and...

Average CPC $=$$$1\mathrm{.}20$

Click through rate $=1\mathrm{.}4\%$

$50,000$ impressions

C$.$ What conversion rate is needed if$...$

The average CPC $=$$$2\mathrm{.}4$

The goal Cost per Acquisition $($CPA$)=$$$15$

D$.$ How many conversions will you get if$...$

Budget $=$$$2500$

$CPC=$$$1\mathrm{.}20$

Conversion rate $=7\%$

E$.$ Your business is selling a pair of shoes$--$ What is the maximum you should pay in CPC

Shoes sell online for $$45.$

Your cost to make the shoes is $$15.$

Shipping costs $$3\mathrm{.}00$ per pair, but in order to compete, you do not charge the customer for shipping.

Your profit goal is $$20$ per pair of shoes

Conversion rate is $5\%$