Msci

In: Business and Management

Submitted By greengalaxy93
Words 1725
Pages 7
Introduction
The clients, David and Victoria have decided to use online advertising to increase their website sales. Before making further analysis, some information about the advertisement costs, the conversion rate and the worth of a customer are given by the business.
The information below is based on the suggestions from the clients for their future advertising strategy: * A major re-design of their website which will cost £ 10000 * The conversion rate is expected to increase to 2.5% or even 3% * Pay £2.50 per click and expected to get about 250 clicks
The analysis of current business performance
Table 1 below shows the list of total cost per day according to the actual cost per click and the number of clicks the website received. The percentage shown is based on the frequency of number of clicks for each day. Since David and Victoria are not sure about how much to pay for each click, the following analysis is to investigate the effect of cost per click on the number of clicks per day. This factor is very important as the business will appear in the list of adverts if they pay more for the competitive bidding process. Day | Cost per click (£) | Number of clicks | Percentage (%) | Total cost(£) | 1 | 1.50 | 171 | 4.43 | 256.50 | 2 | 0.50 | 77 | 1.99 | 38.50 | 3 | 2.00 | 215 | 5.57 | 430.00 | 4 | 1.50 | 171 | 4.43 | 256.50 | 5 | 1.00 | 146 | 3.78 | 146.00 | 6 | 0.50 | 59 | 1.53 | 29.50 | 7 | 2.50 | 234 | 6.06 | 585.00 | 8 | 3.00 | 256 | 6.63 | 768.00 | 9 | 2.20 | 216 | 5.59 | 475.20 | 10 | 0.30 | 10 | 0.26 | 3.00 | 11 | 2.50 | 261 | 6.76 | 652.50 | 12 | 1.00 | 146 | 3.78 | 146.00 | 13 | 3.75 | 288 | 7.46 | 1080.00 | 14 | 1.00 | 156 | 4.04 | 156.00 | 15 | 1.50 | 189 | 4.90 | 283.50 | 16 | 2.00 | 235 | 6.09 | 470.00 | 17 | 2.50 | 275 | 7.12 | 687.50 | 18 | 3.50 | 298 | 7.72 | 1043.00 | 19 | 1.25 | 188 | 4.87…...

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