Going to post some assignments for those that want to try out their skills. Will start out with one at the easy level. Will add assignments for different levels as we go on.
CPC = cost pr click
aCPC = average cost pr click
CTR = click through rate
CPM = cost pr thousand impressions
Assignment 1 (level: newbie)
Assume you have two campaigns:
- teeth whitening
- government grants
Statistics for the teeth whitening campaign:
- Ad impressions: 2 000 000
- Ad CTR: 1.25 %
- Landing page CTR: 15 %
- End page conversions: 75 %
- Payout: $30 pr conversion
- Ad aCPC: $1.50
- Ad cost scheme: CPC
Statistics for the government grants campaign:
- Ad impressions: 2 000 000
- Ad CTR: 0.95 %
- Landing page CTR: 35 %
- End page conversions: 50 %
- Payout: $40 pr conversion
- Ad cost scheme: CPM
- CPM: $ 50
- If it were on CPC cost scheme, the average CPC would be: $ 4.75
- Assume that it is not possible to run the campaign with CPC
Assume no other costs.
What costs are there to each campaign? How much revenue does each campaign generate? What are the profits and what campaign is the most profitable?
If you want to give it a go yourself I suggest you start calculating now before you read spoilers in posts below.