3. Use the following information to calculate the ROI for this search campaign: Average total weekly traffic during the search ad 100,000 campaign Duration of the search ad campaign Average number of sponsored clicks Average cost per click Probability of making a purchase once on the website Average margin per conversion 8 weeks 20,000 $0.80 7.5% $32 What is the ad profit associated with running the campaign? What is the cost of the campaign? What is the ROI of this search campaign? /

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
3. Use the following information to calculate the ROI for this search campaign:
Average total weekly traffic during the search ad
100,000
campaign
Duration of the search ad campaign
Average number of sponsored clicks
Average cost per click
Probability of making a purchase once on the
website
8 weeks
20,000
$0.80
7.5%
Average margin per conversion
$32
What is the ad profit associated with running the campaign?
What is the cost of the campaign?
What is the ROI of this search campaign? /
Transcribed Image Text:3. Use the following information to calculate the ROI for this search campaign: Average total weekly traffic during the search ad 100,000 campaign Duration of the search ad campaign Average number of sponsored clicks Average cost per click Probability of making a purchase once on the website 8 weeks 20,000 $0.80 7.5% Average margin per conversion $32 What is the ad profit associated with running the campaign? What is the cost of the campaign? What is the ROI of this search campaign? /
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Knowledge Booster
Planning
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education