Question: Moran is confused why the cost per click for a display ad on Facebook is about $1.72 whereas it takes about $2.32 to win a

Moran is confused why the cost per click for a display ad on Facebook is about $1.72 whereas it takes about $2.32 to win a keyword auction for "iced tea" on Google AdWords.

a) Use the customer journey concept to explain why this might be so?

b) Moran estimates that for every 100 customers who click on a Google AdWord ad for iced tea placed by Sagacity, it realizes one case sale at $2.70 per bottle. The estimated variable costs are about $15.00 per case. What is the maximum price she might be willing to bid; i.e., what is the value per click of the search ad?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Marketing Questions!

For the exclusive use of S. Setiawan, 2015. 9-910-036 REV: APRIL 11, 2011 BENJAMIN EDELMAN THOMAS R. EISENMANN Go oogle In nc. Go oogle's mission is to organize the world's inf n nformation and make...

For the exclusive use of F. Ortolano, 2015. 9-910-036 REV: APRIL 11, 2011 BENJAMIN EDELMAN THOMAS R. EISENMANN Go oogle In nc. Go oogle's mission is to organize the world's inf n nformation and make...

Facebook and Google have become the largest advertising agencies in the world and theyve apparently done it by hoodwinking publishers. But a series of court cases in the US may cause this dubious...

Read the case study below and answer the questions that follow. Big Tech behaving badly: Why you can't trust Facebook and Google Facebook and Google have become the largest advertising agencies in...

Big Tech behaving badly: Why you can't trust Facebook and Google Facebook and Google have become the largest advertising agencies in the world and they've apparently done it by hoodwinking...

Thinking about Bunn's conception of reading like a writer: What choices does each writer make? How do these choices impact you as a reader? Is it clear why the writer chose the genre and structured...

Moran Consulting currently provides tax services to Weiss Inc. Weiss engages Moran to advise it on the sale of one of its subsidiaries. Moran Consulting receives a nonrefundable, up-front retainer...

C. a Weiss pays a retainer and a success fee to Moran for the advisory services, separate from the tax services. b. Moran currently has Weiss as a customer. Given that Moran is willing to engage in...

Republic of the Philippines SUPREME COURT Manila FIRST DIVISION G.R. No. L-59956 October 31, 1984 ISABELO MORAN, JR., petitioner, vs. THE HON. COURT OF APPEALS and MARIANO E. PECSON, respondents....

I need to update this report for years 2011-2015 ( delete 2010 and add 2015)and change the format so pro can't recognize it from last time. you can look up the info online and I can attach the...

Hak Young is daunted by that monthly payment amount and is trying to figure out how he can make paying off his loan more manageable. He went to his bank and found out he could get a personal line of...

`The standard enthalpies of formation of ions in aqueous solutions are obtained by arbitrarily assigning a value of zero to H+ ions; that is, Hf [H+(aq)] = 0. (a) For the following reaction ...

activity - based costing and generally accepted accouting principles differ in that ABC 1 . does not define product cots in the same manner as GAAP 2 . information is useful only to managers, while...

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

1. Identify three communication approaches to identity.

d. Who are important leaders and heroes of the group?

3. Describe phases of minority identity development.