Question: Your client, Delorme, a leader in GPS, digital mapping and software solutions, has asked you to build a cam paign that will build awareness of
Your client, Delorme, a leader in GPS, digital mapping and software solutions, has asked you to build a cam paign that will build awareness of the brand. Your campaign has been running for about a month now, and it is time to start evaluating performance of the small, but powerful campaign you've designed.
1. The initial goal of the campaign is to build awareness. Click-Through-Rate (CTR) is the most commonly accepted metric to determine the effectiveness of a website at driving brand awareness. While CTR is not directly correlated with driving brand awareness, it is logical that a high CTR (i.e., high number of people click ing per each impression served) indicates that a campaign has a positive impact. Conducting an online brand awareness study would be a better method to establish effectiveness, but your client has limited resources to start and has agreed to use CTR as a means ofestablishing which websites are doing the best.
The web measurement service you use shows the following delivery and clicks by website for your campaign. Calculatethe Click-Through-Rate for each website and add it to the table below:
|
Website | Delivered Impressions |
Clicks | CTR (ClickThrough Rate) |
| ESPN.com | 2,000,000 | 7,000 | (clicks/ Impression *100 = CTR) 0.35 |
| Eonline | 1,000,000 | 4,000 | 0.4 |
| Zillow.com | 1,500,000 | 3,000 | 0.2 |
| AIIRecipies.com | 500,000 | 850 | 0.17 |
| History.com | 1,200,000 | 2,200 | 0.18 |
| iVillage.com | 750,000 | 2,500 | 0.33 |
2. There are two months left in the campaign. In order to improve results, you decide to eliminate two of the websites.Which will you eliminate and why?
After the awareness presentation to the client, the GPS division manager is wondering if a different tactic should beused to improve the volume of traffic to the company website. You recommend using Cost-Per Click (CPC) as ameasure of the efficiency of a publisher website at driving traffic to an advertiser website, and warn that your recommendation may well be different from the one you made for awareness.
In your table, you've added the cost of the impressions for each of the websites. Finish the table by complet ing the calculations for cost per click:
|
Website | Delivered Impressions |
Clicks | Cost of Impressions | CPC (Cost-Per-Click) |
| ESPN.com | 2,000,000 | 7,000 | $30,000 |
|
| Eonline | 1,000,000 | 4,000 | $15,000 |
|
| Zillow.com | 1,500,000 | 3,000 | $ 7,500 |
|
| AIIRecipies.com | 500,000 | 850 | $ 3,500 |
|
| History.com | 1,200,000 | 2,200 | $ 8,400 |
|
| iVillage.com | 750,000 | 2,500 | $ 3,750 |
|
You need to add a 'one-line' description of how to use CPC (i.e. is a high or low CPC desirable) and how that indicates which websites are better. What will you write?
When you present to the client, you explain that even though a website may be effective at driving clicks by having a high CTR, different websites may be better when the cost of media is factored in, as when using CPC. With a new campaign objective of increasing traffic to your company website, which two websites do you recommend dropping and why?
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