3. Running your Ad: budgets and analytics

To keep it simple, you use only one group of keywords but run all three different ad variations.

a) Your budget is $1,000 per month. How many clicks can you expect using an actual CPC of

$0.50?

b) Shortly after running the campaign, you find out that the CTR for your 3 ad variations is as

follows. Which ad version performed better and why?

c) For the second month, you will only run the best performing ad (from above 3b). You find out that

the ad generated 10,000 impressions. How many clicks were generated?

d) Assuming each ad click in 3c) generated one visit and one impression (on the Lil Boop Boor

website url in 2b) how many purchases did Lil' Boop Boop receive from the best performing ad in

3b) using a conversion rate (in this case, purchases / website impressions) of 2%?