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Search Engine Advertising: Paid Clicks vs. Organic clicks (10 points) Nancy, a micro-entrepreneur, operates an online store that sells gardening items. She is considering
Search Engine Advertising: Paid Clicks vs. Organic clicks (10 points) Nancy, a micro-entrepreneur, operates an online store that sells gardening items. She is considering employing paid search services to enhance the performance of her store website. Nancy provides you with the following data Without paid clicks With paid clicks Organic Clicks Paid Search Clicks 1200 0 500 1000 CPC $0.25 $0.25 Conversion Rate 1.5% 1.5% Profit per Sale $15 $15 You, a student who has taken class 16 to 25 of MKTG/BADM 3661, are asked to help Nancy address her question (i.e., whether employing paid search services is more profitable). 6. Can you use the available information to address Nancy's question? If yes, please show your analysis and tell whether employing paid search services is more profitable for Nancy; if not, please explain why. (10 points)
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