B15x v fxA5 Cost per click6 Number of clicks per day7 Conversion to sale8 Average revenue per sale9 Average profit per sale10 Days per month1114 Costs15 Ad ROI1612 Conversions per month13 ProfitB1 Question2 Google's search keyword advertising uses a pay-per-click (PPC) pricing model.3 Calculate the highlighted cells and figure out what's the most the advertiser should pay for the advertising in order to achieve an ROI of 0.24103.6%$200$10C30DTarget ROIE20%GH

ROI (Return on Investment) is the amount of profit margin on the investment made in a project. Ad…

Google's search keyword advertising uses a pay-per-click (PPC) pricing model. Calculate the highlighted cells and figure out what's the most the advertiser should pay for the advertising in order to achieve an ROI of 0.2 Cost per click Number of clicks per day Conversion to sale Average revenue per sale Average profit per sale Days per month Conversions per month Profit Costs Ad ROI 10 3.6% $200 $10 30 Target ROI 20%

Google's search keyword advertising uses a pay-per-click (PPC) pricing model. Calculate the highlighted cells and figure out what's the most the advertiser should pay for the advertising in order to achieve an ROI of 0.2 Cost per click Number of clicks per day Conversion to sale Average revenue per sale Average profit per sale Days per month Conversions per month Profit Costs Ad ROI 10 3.6% $200 $10 30 Target ROI 20%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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3. You are selling necklaces on Amazon for $23.99 and your gross margin is 53%. Amazon will let you buy a "sponsored listing" which means your listing will be shown at the top of the Amazon search results. The average CPC is $0.37 per click. Of those people who click on your listing, 7% purchase the necklace. a. What is the ROI for this type of advertising? Assume all sales from users who click on your ad are incremental.
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