Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your company recently gave you a budget of $100,000 to spend marketing the Flotteklocke digital pocket watch. You have two marketing plans that you are

Your company recently gave you a budget of $100,000 to spend marketing the Flotteklocke digital pocket watch. You have two marketing plans that you are considering. Plan A. You purchase highly targeted banner ads at a $10 CPM. Given how highly targeted the ads are, you expect a CTR of 5% and a bounce rate of only 20%. In your experience, about 20% of non-bounce visits will put something in the shopping cart and about 50% of those will convert to make a purchase. Plan B. You purchase a large volume of untargeted banner ads at a $1 CPM. Given the low level of targeting, the CTR is expected to be 0.1% and the bounce rate 60%. In your experience, about 20% of non-bounce visits will put something in the shopping cart and about 50% of those will convert to make a purchase Under Plan A, how many bounces do you expect the site to have as a result of the campaign? Under Plan B, how many visits will result in a Flotteklocke pocket watch being put into the digital shopping cart? Which plan will result in more sales? Which of the following is the best estimate of the ROI on the campaign? $100,000 $500,000 10% 100% We do not have enough data to tell. ROI does not apply to digital marketing campaigns

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Analysis For Quantitative Finance

Authors: Daniele Ritelli, Giulia Spaletta

1st Edition

1351245104, 9781351245104

More Books

Students also viewed these Mathematics questions

Question

How does selection differ from recruitment ?

Answered: 1 week ago

Question

8. What are the costs of collecting the information?

Answered: 1 week ago