HTI 746 Lecture Notes - Lecture 5: Conversion Marketing

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Hti746: week 5: ctr and conversion rates problems. Visitor is the searcher who clicks on your ppc ad. Buyer is the visitor who buys your product. Click through rate (%) = this is the number of searchers , out of every 100 who see your ad, who become visitors by clicking on your ppc ad. Conversion rate (%) = this is the number of visitors, out of every 100 who click on your ad, who become buyers by answering your call to action". Roi = return / costs = (net revenue costs) / costs. It is normally expressed as a %, so multiply the above value by 100. You are selling a room night for . You find that your ppc ad has a ctr of 4. 0%. Your ctr which was 4. 0% increases to 6%. Your conversion rate increases by a factor of 60%. 45: next you change your ad and bid . 50.

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