During the first week of a search advertising campaign, your ad was served to 10,000 people and you are paying on average $3.35 PPC. It the CTR is 1.35%, then how much did you spend in the first week?
You are deciding whether or not to purchase a display advertising campaign on a PPC or CPM basis. The PPC price is $1.53 and the CPM price is $5.67.
If the expected CTR is 0.5%, which option is less expensive?
If the expected CTR is 2.5%, which option is less expensive?
[challenge] Suppose you are the marketing manager for MyTeam.com, an online seller of jerseys for sports teams. If Philly.com offered to sell you advertising on a pay-per-conversion basis at $10 per conversion and the gross margin on sales is 30%, how big does the average order have to be to justify the cost of the advertising?
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