A firm recently spent $100 on Google AdWords and generated 100 extra visits to the firm’s web site, 5 of which resulted in a purchase. To pay for the change, they dropped the banner advertising on ESPN.com, saving $1000, but which also reduced the number of visits to their web site by 500, and 20 fewer sales. Sales from visitors from ESPN.com were, on average, 25% higher than sales from visitors from Google AdWords. Evaluate the decision to shift advertising money from ESPN.com to Google AdWords.
A firm recently spent $100 on Google AdWords and generated 100 extra visits to the firm’s web site, 5 of which resulted in a purchase. To pay for the change, they dropped the banner advertising on ESPN.com, saving $1000, but which also reduced the number of visits to their web site by 500, and 20 fewer sales. Sales from visitors from ESPN.com were, on average, 25% higher than sales from visitors from Google AdWords. Evaluate the decision to shift advertising money from ESPN.com to Google AdWords.
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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A firm recently spent $100 on Google AdWords and generated 100 extra visits to the firm’s web site, 5 of which resulted in a purchase. To pay for the change, they dropped the banner advertising on ESPN.com, saving $1000, but which also reduced the number of visits to their web site by 500, and 20 fewer sales. Sales from visitors from ESPN.com were, on average, 25% higher than sales from visitors from Google AdWords. Evaluate the decision to shift advertising money from ESPN.com to Google AdWords.
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