Question

2. AquaCosmo, a bottled water manufacturer, has decided to invest in a banner ad on a national news website. The ad is served 501,000 times each day and typically generates 8,260 clicks per day. Total costs for the banner ad are estimated at $13,600. a. What is AquaCosmo's clickthrough rate? b. What is the average cost per click for the advertisement? c. What is the cost per order if the conversion rate is 5% on AquaCosmo's website? 3. BMW is going to introduce a new 5 series this year and wants to advertise on a few major newspaper outlets that fall in line with BMW's target audience. An ad on Wall Street Journal is likely to generate 4,500,000 impressions and cost $30,000, while an ad on Bloomberg Businessweek is likely to generate 3,000,000 impressions and cost $22,000. What's the CPM for advertising on WSJ and Bloomberg? Which one should the BMW marketing manager choose?

Answer 1

Answers

2. A

Clickthrough rate = 8260/501000= 1.65%

Cost per click of advertisement= 13600/8260= 1.65$

Cost per order if 5%sold= 13600/8260*5%= 32.93 $

3.Ansswer:

Wsj = 30,000/45, 00,000= 0.0067$

Bloomerg: 22,000/ 30,00,000= 0.0073$

It's better to choose WSJ