Computing Cost-per-Click, Cost-per-Action, and Cost-per-Engagement

Problems

1.    An in-stream video ad on Hulu costs $35. Your client is looking to reach millennials who are cord-cutters, and only view TV through online services, which means a high frequency of ads. They are willing to pay for 560 ads on Hulu for 4 months. What is the total amount your client will spend for this campaign?

2.    Oh no! The Hulu campaign did not have the reach you expected, but your client is still seeking to reach millennials in the digital space. The client now wants to see more millennials engage with its Snapchat story. A Snapchat story costs $750,000 and your client averages 42,065 views on its Snapchat story. The client wants to increase engagements on Snapchat this year by 35%.

a.    What is the CPE on Snapchat for your client currently?

b.    What is the number of engagements your client is looking to reach this year?

c.    What will the new CPE be after the increase in engagements?

3.    Your client is looking to put banner ads on a website. The ad space costs

$58,350.This particular site drives 11,000 visitors to its site daily. Assuming you have purchased the full site (you are the only leaderboard banner ad on the site for that week, over the course of a week, your ad received 23,875 clicks.

a.    What were the number of impressions you received after 3 days?

b.    What was the CPC after one week?

4.    Your banner ads have done well in driving consumers to your client’s site. Now they want to drive purchase. If the CPA for purchase is $0.75, and your spent $50,000 on your campaign, how many sales did your campaign drive?