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This is pretty cool, just did Assignment 2 here's what I got:
Question1:
19,031 to End Page.... 6,000 conversions / 19,031 = 31.5% Conversion for FB
To get that: 5,250,000 * .0145 * .25 = 19,031.
The new CTR on Acai would be 40% * .78 = 31.2%
Question 2:
Total clicks to the end page would be 891 => $10,000/3.5CPC = 2,857 Clicks X 31.2% (40% CTR * (1-.22))
and that new CTR is the 31.2% calculated above by 1 - .22 .
To get the total FB Profit:
10,000 / 1.2CPC = 8,333 Clicks X 25%CTR = 2,083 X 31.5% Conv. = 636 Conversions X $20 Payout = $13,120 Revenue - $10,000 Investment = $3,120 Profit
Assumption: The $1,000 from web site flipping doesn't affect the value of your FB investment as it will be applied to a campaign in which you can use it; AdWords and Acai.
AdWords Profit:
10,000 / 1.75CPC= 5,714 Clicks X 30% CTR = 2,083 X 35% Conv. Rate = 600 Conversions x $20 Payout = $12,000 Revnue + $1,000 from Site flipping = $13,00 Revenue - $10,000 invested = $3000 Profit for Adwords.
Acai Berry Profits:
$10,000 / $3.5 = 2,857 Clicks X 31.2% CTR (from Q2) = 891 X 40% = 356 Conversions X $30 Payout = $10,680 Revenue - $10,000 Invested - $300 Outsourced Work + $1000 Site Flipping= $1380 Profit.
Conclusion:
From what I've calculated, I'd go with the Facebook ad if it were my only investment.
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