Promotion - Case Worksheet

Case #1 - Word vs. Mobile Ad

Consider the following digital marketing activities for an online business.

Word Ad

• Pay per click Word Ad campaign with a final cost of $3100.
• Ad is displayed 15,000 times.
• 630 people click on a link in the ad.
• 265 visitors explore the website.
• 40 complete a form.
• 15 make a purchase.

1. Identify the Awareness, Evaluation and Purchase phases in the marketing funnel diagram.

1. Identify values for:

Impressions =

Clicks =

Visitors =

Bounces =

Leads =

Customers =

Mobile Display Ad

• Purchase mobile Display Ads costing $9350.
• Identify the Awareness, Evaluation and Purchase phases in the marketing funnel diagram.
• Your ad is displayed 120,000 times.
• 11,000 click on a link in the ad.
• 4800 explore the website.
• 85 add to cart.
• 30 purchases.

• Identify values for:

Impressions =

Clicks =

Visitors =

Bounces =

Leads =

Customers =

Using the values from part 2 above, calculate the metrics for both campaigns in the chart below. Benchmark Industry Averages are in brackets.

Metrics	Word Ad	Mobile Display Ad
% Click Through Rate (CTR)	(Average 3.17%)	(Average 0.35%)
% Bounce Rate
Cost Per Click (CPC)	(Average $3.57)	(Average $0.78)
Cost Per Lead (CPL)	(Average $65.12)	(Average $130.73)
Cost Per Acquisition (CPA)
% Conversion Rates leads to visitors	(Average 3.75%)	(Average 0.56%)
sales to leads
sales to visitors
Return On Ad Spend (ROAS)	(Total Revenue $9, 200)	(Total Revenue $29, 000)

Further Analysis

Use the data in the table above, to answer the following questions.

1. What should the budget for a Word Ad budget be to bring their CPC down to $4.00 for the same number of clicks?

1. According to your answer above,
2. what will happen to their CPL?
3. What revenue is needed to have their ROAS of $4.00?

1. If a different website had a 1% clickthrough rate and served up 200,000 impressions, how many clicks would it have?