Question: write down not only the result but also the formula used to get to that result. Explain the process and reasoning behind the calculation you

write down not only the result but also the formula used to get to that result. Explain the process and reasoning behind the calculation you used:

1. With a budget of $1000, an average CPC of $2.50, how many clicks can the advertiser receive before their budget is exhausted?

2. With an unlimited budget, an average CPC of $1.00, a CTR of 1.8%, and 60,000 impressions, how much will the advertiser spend?

3. With an average CPC of $2.00, how high does the conversion rate need to be in order to reach a goal CPA of $10?

4. If you have a $3000 budget, your average CPC is $0.50, and your conversion rate is 5%:

A. what is your current CPA?

B. How many conversions can you get for $3000?

5. Assume you buy womens skirts at wholesale for $10, and you resell them online for $50, and you give away free shipping which costs $5, and you want to make $20 per skirt:

A. what should your target CPA be?

B. using the above information and answer with an average CPC of $3, how many clicks can you get before you get a sale?

C. What should be your target conversion rate?

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 General Management Questions!