Assume you are an online retailer of t-shirt. You purchase the t-shirt from the wholesaler for...
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Assume you are an online retailer of t-shirt. You purchase the t-shirt from the wholesaler for $10 each and sell it online for $35. The shipping fee, which costs $5, is free to your customers. If your target profit is $5 per sale, then What should be your target CPA (cost per acquisition/conversion: cost of getting a customer)? . If the CPC is $0.5, how many clicks do you expect to receive before reaching a sale? • Then, what should be your target conversion rate? Don't just show the results, please show the detailed calculation process (3 pts) ● YouTube allows creators to display ads on their videos, and they earn money based on the number of ad views. Assume you are a YouTuber and this is the primary source of revenue for you. The average CPM of YouTube ads is $5 (cost for advertisers but revenue for YouTubers). • On average, there are 3 TrueView Ads during a video play. Your video has been watched 1 million times. ● ● How much money can you make from this video? (2 pts; please show the calculation process) Assume you are an online retailer of t-shirt. You purchase the t-shirt from the wholesaler for $10 each and sell it online for $35. The shipping fee, which costs $5, is free to your customers. If your target profit is $5 per sale, then What should be your target CPA (cost per acquisition/conversion: cost of getting a customer)? . If the CPC is $0.5, how many clicks do you expect to receive before reaching a sale? • Then, what should be your target conversion rate? Don't just show the results, please show the detailed calculation process (3 pts) ● YouTube allows creators to display ads on their videos, and they earn money based on the number of ad views. Assume you are a YouTuber and this is the primary source of revenue for you. The average CPM of YouTube ads is $5 (cost for advertisers but revenue for YouTubers). • On average, there are 3 TrueView Ads during a video play. Your video has been watched 1 million times. ● ● How much money can you make from this video? (2 pts; please show the calculation process) Assume you are an online retailer of t-shirt. You purchase the t-shirt from the wholesaler for $10 each and sell it online for $35. The shipping fee, which costs $5, is free to your customers. If your target profit is $5 per sale, then What should be your target CPA (cost per acquisition/conversion: cost of getting a customer)? . If the CPC is $0.5, how many clicks do you expect to receive before reaching a sale? • Then, what should be your target conversion rate? Don't just show the results, please show the detailed calculation process (3 pts) ● YouTube allows creators to display ads on their videos, and they earn money based on the number of ad views. Assume you are a YouTuber and this is the primary source of revenue for you. The average CPM of YouTube ads is $5 (cost for advertisers but revenue for YouTubers). • On average, there are 3 TrueView Ads during a video play. Your video has been watched 1 million times. ● ● How much money can you make from this video? (2 pts; please show the calculation process) Assume you are an online retailer of t-shirt. You purchase the t-shirt from the wholesaler for $10 each and sell it online for $35. The shipping fee, which costs $5, is free to your customers. If your target profit is $5 per sale, then What should be your target CPA (cost per acquisition/conversion: cost of getting a customer)? . If the CPC is $0.5, how many clicks do you expect to receive before reaching a sale? • Then, what should be your target conversion rate? Don't just show the results, please show the detailed calculation process (3 pts) ● YouTube allows creators to display ads on their videos, and they earn money based on the number of ad views. Assume you are a YouTuber and this is the primary source of revenue for you. The average CPM of YouTube ads is $5 (cost for advertisers but revenue for YouTubers). • On average, there are 3 TrueView Ads during a video play. Your video has been watched 1 million times. ● ● How much money can you make from this video? (2 pts; please show the calculation process)
Expert Answer:
Answer rating: 100% (QA)
SOLUTION To calculate the target CPA cost per acquisitionconversion we need to consider the profit margin per sale and the associated costs Profit per ... View the full answer
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
Posted Date:
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