Quote:
Originally Posted by grimaceaz
Gonna take a stab at assignment 1.
What costs are there to each campaign?
teeth) $37,500.00
grant) $100,000.00
How much revenue does each campaign generate?
teeth) $84,375.00
grant) $133,000.00
What are the profits and what campaign is the most profitable?
teeth) $46,875.00
grant) $33,000.00
Teeth was more profitable with a 225% ROI vs 133% ROI for grants
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I'm getting the same results. I've gone over this a few times now, Mike any idea what I'm doing wrong?
I know you said check your 1000 but I keep coming to the same solution. I'm not sure what error I'm making, since we have the same answer for the grant offer...the teeth whitening I must be doing something very wrong here...
- 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
This is the process I used:
#of ppl that clicked the ad : 2,000,000 * .0125 = 25,000
#of ppl that clicked through to offer : 25,000 * .15 = 3,750
#of conversions : 3750 * .75 = 2,812.5
revenue= 2,812.5 * $30 = $84,375
expense= 25,000 * $1.50 = $37,500
profit = $84,375 - 37,500 = $46,875