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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

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