You have the following goals for your marketing efforts. Maximize ROI of marketing spending, subject to the
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Question:
You have the following goals for your marketing efforts. | ||||||||
Maximize ROI of marketing spending, subject to the 8 constraints below. | ||||||||
Campaign type | Cost | Number of Clicks | Cost per Click | Conversions | Conversion/Cost | Revenue (Total) | ROI | |
Search ads | 14,000 | 22,068 | 0.63 | 2,300 | 0.16 | $ 225,776 | 15.13 | |
Display ads | 10,000 | 23,000 | 0.43 | 482 | 0.05 | $ 35,000 | 2.50 | |
tube | 3,000 | 12,000 | 0.25 | 1,100 | 0.37 | $ 23,000 | 6.67 | |
4,000 | 35,000 | 0.11 | 3,000 | 0.75 | $ 135,000 | 32.75 | ||
Constraints | ||||||||
1. Total budget <= 20,000 | ||||||||
2. At least $2,000 of display ads | ||||||||
3. At least $2,000 of search ads | ||||||||
4. YT plus FB has to be at least 50% of the total | ||||||||
5. FB must be more than search | ||||||||
6. Search has to be at least 10% | ||||||||
7. Need at least 3,000 responses (conversions) | ||||||||
8. tube has to be at least 10% | ||||||||
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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