We're looking to work with a new publisher that is interested in selling us two different placements. The publisher has told us that placement 1 has an approximate CTR of 0.3% and will get 2M impressions per month. Placement 2 has an approximate CTR of 0.4% and will get 3M impressions. The CPM for Placement 1 is $5, CPM for Placement 2 is 6$ The conversion rate of our landing page is 8% and the leads generated all are worth $50. Please use the worksheet outlined below to fill in the highlighted cells with the answers you find. 1. What is the total cost? 2. What is the total revenue and return on ad spend? 3. What is the total clickthrough rate (CTR)? 4. Which placement is more effective in terms of ROAS?
We're looking to work with a new publisher that is interested in selling us two different placements. The publisher has told us that placement 1 has an approximate CTR of 0.3% and will get 2M impressions per month. Placement 2 has an approximate CTR of 0.4% and will get 3M impressions. The CPM for Placement 1 is $5, CPM for Placement 2 is 6$ The conversion rate of our landing page is 8% and the leads generated all are worth $50. Please use the worksheet outlined below to fill in the highlighted cells with the answers you find. 1. What is the total cost? 2. What is the total revenue and return on ad spend? 3. What is the total clickthrough rate (CTR)? 4. Which placement is more effective in terms of ROAS?
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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