1. Calculate the advertising budget for a start-up using benchmark-based approach. Start-up expects to reach annual $300,000 revenue They compete in the industry that dedicates on average 6% of the revenues to promotion. 2. Given that all sales come through their website, how many websites visits they need to achieve the revenue goal? Average sale price of their devices is $600 Projected conversion rate (\% site visitors who makes a purchase) is 8% Sales Volume (\#items) = Revenue / Price Website Visits = Sales volume /Conversion 3. Start-up advertises online on Google and Facebook. Use objective-based approach to calculate advertising budget required to attract desired number of website visits. The company expects to get 60% of website visits from Google ads and 40% from Facebook. Average cost per click (CPC) of an online ad is $1.75 on Facebook and $2.50 on Google Ads Cost per channel = Website visits * CPC Compare your results 1 and 3 . Which approach would serve the company better and why