INSTRUCTIONS: We're looking to work with a new publisher that is interested in selling us two...
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INSTRUCTIONS: 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 retutn on ad spend? 3. What is the total clickthrough rate (CTR)? 4. Which placement is more effective in terms of ROAS? Placement 1 Placement 2 Total Impressions 2,000,000 3,000,000 CTR 0.30% 0.40% CR 8.00% 8.00% Clicks Leads = = Impressions * CTR = = Clicks * CR Revenue = Leads * RPL DEFINITIONS: Revenue: Money generated from leads submitted by visitors filling out forms. Impressions: The number of times a page is viewed. Clicks: The number of visitors who click a link or a banner that sends them to a lead form. Clickthrough Rate (CTR): The percentage of impressions that turn into clicks. Conversion Rate(CR): The percentage of clicks that turn into leads. CPM: Cost per 1000 impressions. Lead Form: Page where user provides answers to questions regarding a service or product Lead: Successfully completed form. RPL: average Revenue per one lead Return on Ad spend ROAS: Revenue devided by Cost *100 % Cost ROAS $ $ = Impressions / 1000 * CPM RPL = Revenue / Cost 50 $ 50 $ CPM 5 6 INSTRUCTIONS: 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 retutn on ad spend? 3. What is the total clickthrough rate (CTR)? 4. Which placement is more effective in terms of ROAS? Placement 1 Placement 2 Total Impressions 2,000,000 3,000,000 CTR 0.30% 0.40% CR 8.00% 8.00% Clicks Leads = = Impressions * CTR = = Clicks * CR Revenue = Leads * RPL DEFINITIONS: Revenue: Money generated from leads submitted by visitors filling out forms. Impressions: The number of times a page is viewed. Clicks: The number of visitors who click a link or a banner that sends them to a lead form. Clickthrough Rate (CTR): The percentage of impressions that turn into clicks. Conversion Rate(CR): The percentage of clicks that turn into leads. CPM: Cost per 1000 impressions. Lead Form: Page where user provides answers to questions regarding a service or product Lead: Successfully completed form. RPL: average Revenue per one lead Return on Ad spend ROAS: Revenue devided by Cost *100 % Cost ROAS $ $ = Impressions / 1000 * CPM RPL = Revenue / Cost 50 $ 50 $ CPM 5 6
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Based on the instructions and information provided we can use the formulas defined in green at the bottom of the worksheet to calculate the requested ... View the full answer
Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
Posted Date:
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