PART 1: Analyze Google Ads (10)
A. Conduct a Google search for a product or service or just a topic in which you are genuinely interested in.
1. You will conduct a brief analysis for your search. If your first search does not bring up Google ads, try another search.
2. For each search, provide a screenshot of all the ads that appear. Then, answer the following questions.
a) Which ad would you most likely click on? Explain why it appealed to you.
b) Analyze the ads as a group. Do the ads all appeal to different segments or do they all seem to be appealing to the same segment of customers? (If there is only one ad, analyze what kind of customer segments the ad appeals to and what other kinds of customer segment this company might be missing out on.)
c) Click on one ad that appealed to you most. Analyze the quality of the landing page by answering the following questions: (a) how does it match the message in the ad (consider product, price, promotion, keywords)? (b) Does it answer the 3Q’s we discussed in the Websites & Traffic lecture? (c) Does the landing page encourage conversion and how?
Part 2: PPC Calculations (20)
A. Answer these terms below in order to complete Part B (on next page):
1. What are impressions? How can you calculate impressions?
2. What is CPC? How do you calculate CPC?
3. How can you also calculate CPC using CPA and CVR?
4. What is a CTR? How do you calculate CTR?
5. What are conversions? How do you calculate CVR?
6. What is CPA? How do you calculate CPA using CVR and CPC?
PART B: Show your calculations below and round answers to 2 decimal places.
1. If you had a paid search budget of $1000, and you determined that your average CPC is $2.50, how many clicks could you receive before your budget is fully spent?
2. You decided to launch a new Ad Campaign and after performing some keyword research, you determined that your average CPC would be $1.00. Based on your previous experience with paid search, you estimate your Ad will receive a 1.8% CTR and that your Ad will get a total of 60,000 impressions. Based on all of this, how much of your budget will you spend on this particular campaign?
3. For a different campaign, you have determined your average CPC is $2.00. Now you are wondering how high your conversion rate can be if your cost per action/acquisition (“CPA”) is $10?
4. Your friend runs an online retail business and has a $3000 budget to invest in paid search. They have determined that their average CPC is $0.50 and that their conversion rate is 5%. How can you help them figure out what their CPA is?
5. Based on the information from above, your friend asks how many conversions they can get for their $3000 budget. What do you tell them?
6. Assume you buy cotton fabric from a wholesaler for $10 a metre. You are able to make 5 reusable face masks which you resell for $50 a package. Since you offer free shipping for customers, your shipping costs $5 for each order and you want to build into your budget a target profit of $20 for each order. Based on this, what should your target CPA be?
7. Based on the information from above, and knowing that your average CPC will cost $3, what would be your target conversion rate?
8. And based on the information from above, how many clicks do you need to have before you get one sale?
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