The Problem:

You are deciding whether to advertise your new campaign on Facebook, using paid ads, or on Instagram, using "influencer sponsorships". Assume both options appeal to your ideal demographic and make sense for your brand.

Deliverable:

1. Draw a decision tree for your advertising campaign.
2. Calculate the Value of the Facebook Investment.
3. Calculate the Value of the Instagram Investment.
4. Provide a recommendation and explain why.

Information:

• For the Advertising Campaign, there is a 50% chance of success or failure for both Facebook and Instagram.
• If you succeed with Facebook, your ROI is around $1,000. If you fail, you risk losing $200.
• If you succeed with Instagram, your ROI is around $900. If you fail, you risk losing $50.