The CPM and CPC rates of a publisher of display ads is $40 and $4, respectively. The average CTR of display ads is 0.5%. Which of the two buying models will be more profitable for the marketer and which model should the publisher choose for selling ad inventory?

The CPM and CPC rates of a publisher of display ads is $40 and $4, respectively. The average CTR of display ads is 0.5%. Which of the two buying models will be more profitable for the marketer and which model should the publisher choose for selling ad inventory?

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Question

The CPM and CPC rates of a publisher of display ads is $40 and $4, respectively. The

average CTR of display ads is 0.5%. Which of the two buying models will be more

profitable for the marketer and which model should the publisher choose for selling ad

inventory?

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