3. Use the following information to calculate the ROI for this search campaign: Average total weekly traffic during the search ad 100,000 campaign Duration of the search ad campaign Average number of sponsored clicks Average cost per click Probability of making a purchase once on the website Average margin per conversion 8 weeks 20,000 $0.80 7.5% $32 What is the ad profit associated with running the campaign? What is the cost of the campaign? What is the ROI of this search campaign? /

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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3. Use the following information to calculate the ROI for this search campaign:
Average total weekly traffic during the search ad
100,000
campaign
Duration of the search ad campaign
Average number of sponsored clicks
Average cost per click
Probability of making a purchase once on the
website
8 weeks
20,000
$0.80
7.5%
Average margin per conversion
$32
What is the ad profit associated with running the campaign?
What is the cost of the campaign?
What is the ROI of this search campaign? /
Transcribed Image Text:3. Use the following information to calculate the ROI for this search campaign: Average total weekly traffic during the search ad 100,000 campaign Duration of the search ad campaign Average number of sponsored clicks Average cost per click Probability of making a purchase once on the website 8 weeks 20,000 $0.80 7.5% Average margin per conversion $32 What is the ad profit associated with running the campaign? What is the cost of the campaign? What is the ROI of this search campaign? /
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