Questions 1. Refer to the Filtering for Positive Customer Lifetime Value (CV) datatable. Without making any changes to the table, what two advertising channels have positive CLV? Facebook and Google AdWords Television and YouTube Television and magazines Magazines and Google AdWords Facebook and local radio 2. After some further analysis, you find that the customer acquisition cost for YouTube is different than you originally calculated. Still referencing the filtering for positive Customer Lifetime Value (CV) data table, now change the customer acquisition cost of YouTube to $25. How does this change the CLN? CLV remains negative CLV turns positive CV goes to zero (or reaches the breakeven point) 3. Your promotions team plans to evenly divide their $1,800,000 ad budget for each market only among the ad channels with a positive customer lifetime value (CLV). Refer to the Filtering for Positive CLV data table and Identify the ad channels you found to have positive CLV (after updating the YouTube customer acquisition cost to $25). Divide the $1,800,000 ad budget evenly between the ad channels with positive CLV - input the values in the Ad Budget Allocation data table. Now that you have allocated the advertising budget equally between the ad channels with positive CLV, what is the average return on marketing investment (ROMI) for the $1,800,000 ad campaign in each city? 10% 31% 42% 55% 93% Scenario As the marketing analyst for Better Beans Coffee Company, you recently made a recommendation to management about the best two cities for opening new stores. Management accepted your recommendations and is building stores in those cities now. Your next task is to recommend the optimal advertising mix to your promotions team. This is the mix that will be used to promote each new store when it opens. Using historical data, you have already calculated customer acquisition cost for each of the company's six advertising channels. After some further calculation, you have estimated that lifetime gross margin per customer averages $29. Your promotions team plans to evenly divide their $1.8 million ad budget for each market only among the ad channels with a positive customer lifetime value (CLV). They'll be closely tracking return on marketing Investment (ROMI) of these campaigns and would like an estimate ahead of time. (1) 1 FILTERING FOR POSITIVE CUSTOMER LIFETIME VALUE (CLV) Advertising Lifetime Customer Customer Channel Gross Acquisition Lifetime 2. Margin Per Cost Value 3 Television $ 29 $ 30 S (1) 4 Magazines $ 29 $ 45 $ (16) 5 Facebook $ 29 $ 15 $ 14 6 YouTube $ 29 $ 30 $ 7 Google AdWords $ 29 $ 40 $ (11) 8 Local Radio $ 29 $ 25 $ 4 9 10 AD BUDGET ALLOCATION (Note: The ad budget divided equally between channels with pe Advertising Allocation of Channel the Ad 11 Budget 12 Television 13 Magazines 14 Facebook 15 YouTube 16 Google AdWords 17 Local Radio 18 TOTAL $ 19 RETURN ON MARKETING INVESTMENT (ROMI) Advertising Attributable Campaign ROMI Channel Revenue Cost Television $ $ 0 Magazines $ $ 0 Facebook $ $ 0 YouTube $ $ 0 Google AdWords $ $ 0 Local Radio $ $ 0 Average ROMI of Campaign 0