Question: Sam has collected some data for a retailer to assist them to decide whether they should employ paid search advertising on a search engine. Based

Sam has collected some data for a retailer to assist them to decide whether they should employ paid search advertising on a search engine. Based on the data below, please conduct an analysis and share the insights about whether it is profitable for the retailer to employ paid search. Explain your answer. (9 marks)

Organic search clicks

Paid search clicks

Cost per click

Conversion rate for paid search clicks

Conversion rate for organic clicks

Profit per sale

Without paid search

3000

0

$0.2

15%

10%

10

With paid search

500

3000

$0.2

15%

10%

10

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