Question
Phil's Army Surplus calculator business was going great guns -- especially the newest models with exclusive camouflage color schemes. Phil sold the calculators from his
Phil's Army Surplus calculator business was going great guns -- especially the newest models with exclusive camouflage color schemes. Phil sold the calculators from his own dedicated web site: Phil-the-bill.com and had consistent sales of 630 units per week. The calculators sold for $40 earning Phil a margin of 44% percent. He also sold the calculators for the same price through an online department store, BigMuddy.com. BigMuddy earns a 19% commission on sales resulting from clickthroughs originating from BigMuddy. The latter accounts for 10% of total unit sales and somewhat less of dollar sales after commissions were paid.
Phil decides to use search engine marketing techniques and arranges to buy the terms "Mossey Oaks - go figure". He pays $5 per click to Phil-the-bill.com and converts 40% of clicks, all of which are incremental sales . What is the ROMI for this campaign?
lift = 0.451 (45.1%) incsales = 284
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