lpride
Medlem
Jeg har postet noen økonomioppgaver i newbieforumet på WickedFire. Kanskje noen her har lyst til å prøve seg. Om du vil sneak-peake ligger mine løsningsforslag til oppgave 1-5 i tråden på WickedFire. Ellers vil jeg legge ut løsningsforslag om ei stund dersom det er interesse for dette. De fleste oppgavetekstene tar utgangspunkt i ei setting med en IM (Internettmarkedsfører), men kan i absolutt høyeste grad brukes i andre sammenhenger. Temaet Internett-markedsføring var bare for å motivere og gjøre oppgavene mer interessante for brukerne på WickedFire. Du kan sjølsagt svare på norsk og jeg diskuterer gjerne oppgaveløsninger og forklarer løsninger mer utdypende dersom dette er ønskelig.
Going to post some assignments for those that want to try out their skills. Will start out with one at the easy level. Will add assignments for different levels as we go on.
CPC = cost pr click
aCPC = average cost pr click
CTR = click through rate
CPM = cost pr thousand impressions
Assignment 1 (level: newbie)
Assume you have two campaigns:
teeth whitening
government grants
Statistics for the teeth whitening campaign:
Ad impressions: 2 000 000
Ad CTR: 1.25 %
Landing page CTR: 15 %
End page conversions: 75 %
Payout: $30 pr conversion
Ad aCPC: $1.50
Ad cost scheme: CPC
Statistics for the government grants campaign:
Ad impressions: 2 000 000
Ad CTR: 0.95 %
Landing page CTR: 35 %
End page conversions: 50 %
Payout: $40 pr conversion
Ad cost scheme: CPM
CPM: $ 50
If it were on CPC cost scheme, the average CPC would be: $ 4.75
Assume that it is not possible to run the campaign with CPC
Assume no other costs.
What costs are there to each campaign? How much revenue does each campaign generate? What are the profits and what campaign is the most profitable?
If you want to give it a go yourself I suggest you start calculating now before you read spoilers in posts below.
End page = advertiser's page
This one is a bit more advanced.
Assignment 2
You have $ 10 000 and you are wondering on how to spend them.
Currently the money is in your bank account with an awesome 0 % yearly interest rate.
Your uncle is trying to convince you to invest the money in securities through which you will gain a 20 % annual return for sure. These earnings will be equally distributed throughout the year.
You are currently running two campaigns (online marketing):
Acai berries
Teeth whitening
Acai berries campaign stats:
Ad impressions: 2 000 000
Ad CTR: 2.25 %
Landing page CTR: 40 %
End page conversions: 40 %
Payout: $30 pr conversion
Ad aCPC: $3.50
Ad cost scheme: CPC
The teeth whitening campaign is promoted via Facebook and Google AdWords:
Teeth whitening Facebook stats:
Ad impressions: 5 250 000
Ad CTR: 1.45 %
Landing page CTR: 25 %
End page conversions: 6 000
Ad aCPC: $1.2
Ad cost scheme: CPC
Teeth whitening AdWords stats:
Ad impressions: 10 259 000
Ad CTR: 0.45 %
Landing page CTR: 30 %
End page conversions: 35 %
Ad aCPC: $1.75
Ad cost scheme: CPC
Payout for teeth whitening conversions: $20 pr conversion
Question 1: Consider the Facebook ads you have running for teeth whitening. How many per cent of the customers that go from your landing page to the advertiser's page orders the product?
Due to the recent negative reviews on online Acai marketers in the news, you can assume that your landing page CTR will decrease by 22 %.
Question 2: How many will click through away from your landing page (and on to the end page) in the acai berries campaign? Calculate per cent and actual number.
Assume you'd like to keep the teeth whitening ads on the same network from now on. Thus, you will have to choose between Facebook Ads and Google AdWords.
You are only willing to continue the teeth whitening campaign with totally new ads on Facebook, that you will have to come up with.
The Facebook Ad Approval department disapproves 4/5 of your ads. You want 50 different ads up and running for targeting purposes and to test different ad copies.
Assume the Facebook approvals take 6 hours pr ad you submit. You only submit one at the time, since you're lazy. This means you wait for an approval or a disapproval before you submit your next ad. You will pause all ads until all 50 are approved.
Assume the stats via Facebook will be the same as previously, but take the lowered CTR (question 2) into consideration. The time you spend on adding new ads is the same time you would use to flip websites for a $ 1000 profit.
For AdWords you will use the same old ads.
Because of the recent negative against Acai you will have to tweak your landing page a little. You outsource this for $ 250 (sales letter & new LP design).
You are going to make 150 new Acai berry ads. This task will also be outsourced for $ 50, and is completed almost immediately. You are still going to use the ad network through which you have previously promoted it.
Question 3: Should you spend your money on the Acai berries or the Teeth Whitening campaign? Assume that you are to spend every penny of those $10 000. Show relevant calculations.
Assignment 3
You are in discussions with an advertiser for a special deal on affiliating their product. The advertiser pays you NET30 (30 days after the commission was registered). This means if you sent leads worth of $ 1000 in commissions one day, you are credited that amount 30 days later. Currently you send leads worth $ 40 000 in commissions every month.
You offer this deal to the advertiser:
"You can decrease my commissions by 1 % if you pay me NET10 from now on."
Under what condition does he accept your offer?
Assignment 4
You have a website that is budgeted to generate $ 27 000 in revenues pr year the next 4 years.
Webhost costs are $ 1 000 pr year. Advertising costs are $ 2 000 pr year.
You outsource the article writing for the website. You will put on 40 articles pr month, 25 of which are 600 words (per article). The rest are 1000 words per article.
You will pay the article writer $4/100 words.
It is expected that you can sell it for $ 25 000 in 4 years.
Someone is offering you $ 50 000 for the website now.
The rate of return is 10 %.
What do you do - sell it now or keep it running and then sell it after 4 years?
Assignment 5
You are an email marketer. You have observed the following:
Total emails sent pr week for 10 weeks: 49872, 52034, 47322, 56999, 48932, 43456, 53104, 50888, 45032, 49999
Total costs pr week for 10 weeks (the same weeks as above): 1500, 1743, 1388, 1844, 1599, 1333, 1900, 1011, 1803, 1800
You want to estimate a function for your total costs for a week as a function of sent emails that week. What is it?
Assignment 6
You buy a computer for $1500 and do not use it for a year. Assume that you can and do sell it for $1500 after that year.
Question 1: What did the computer cost you?
Now, forget the computer.
Question 2: Generally, in your decision making, should you care about absolute or relative prices?
Assignment 7
You are interested in a new niche you are wondering about Internet marketing a product in. Assume that the product's a priori probability for high demand (H) is 0.4. There is only high (H) and low (L) demand. You want to test the niche by PPC. The testing will give you an indication 'g' if the signal is good, and 'b' if the signal is bad. From your previous experience in testing new products in similar niches, the probability of a good indication is 60% given high demand, while the probability of a bad signal given low demand is 90%. Assume these measures are representable here too. If you decide to market the product you will have a 35 000 profits if there is high demand, and 5 000 profits if there is low demand. If you do not proceed in marketing the product your profits are 15 000 from other marketing activites, independent of the demand state for the product in question. Assume that you are risk neutral, i.e. you only care about expected profits. How much should you spend on testing the product in the niche?
Going to post some assignments for those that want to try out their skills. Will start out with one at the easy level. Will add assignments for different levels as we go on.
CPC = cost pr click
aCPC = average cost pr click
CTR = click through rate
CPM = cost pr thousand impressions
Assignment 1 (level: newbie)
Assume you have two campaigns:
teeth whitening
government grants
Statistics for the teeth whitening campaign:
Ad impressions: 2 000 000
Ad CTR: 1.25 %
Landing page CTR: 15 %
End page conversions: 75 %
Payout: $30 pr conversion
Ad aCPC: $1.50
Ad cost scheme: CPC
Statistics for the government grants campaign:
Ad impressions: 2 000 000
Ad CTR: 0.95 %
Landing page CTR: 35 %
End page conversions: 50 %
Payout: $40 pr conversion
Ad cost scheme: CPM
CPM: $ 50
If it were on CPC cost scheme, the average CPC would be: $ 4.75
Assume that it is not possible to run the campaign with CPC
Assume no other costs.
What costs are there to each campaign? How much revenue does each campaign generate? What are the profits and what campaign is the most profitable?
If you want to give it a go yourself I suggest you start calculating now before you read spoilers in posts below.
End page = advertiser's page
This one is a bit more advanced.
Assignment 2
You have $ 10 000 and you are wondering on how to spend them.
Currently the money is in your bank account with an awesome 0 % yearly interest rate.
Your uncle is trying to convince you to invest the money in securities through which you will gain a 20 % annual return for sure. These earnings will be equally distributed throughout the year.
You are currently running two campaigns (online marketing):
Acai berries
Teeth whitening
Acai berries campaign stats:
Ad impressions: 2 000 000
Ad CTR: 2.25 %
Landing page CTR: 40 %
End page conversions: 40 %
Payout: $30 pr conversion
Ad aCPC: $3.50
Ad cost scheme: CPC
The teeth whitening campaign is promoted via Facebook and Google AdWords:
Teeth whitening Facebook stats:
Ad impressions: 5 250 000
Ad CTR: 1.45 %
Landing page CTR: 25 %
End page conversions: 6 000
Ad aCPC: $1.2
Ad cost scheme: CPC
Teeth whitening AdWords stats:
Ad impressions: 10 259 000
Ad CTR: 0.45 %
Landing page CTR: 30 %
End page conversions: 35 %
Ad aCPC: $1.75
Ad cost scheme: CPC
Payout for teeth whitening conversions: $20 pr conversion
Question 1: Consider the Facebook ads you have running for teeth whitening. How many per cent of the customers that go from your landing page to the advertiser's page orders the product?
Due to the recent negative reviews on online Acai marketers in the news, you can assume that your landing page CTR will decrease by 22 %.
Question 2: How many will click through away from your landing page (and on to the end page) in the acai berries campaign? Calculate per cent and actual number.
Assume you'd like to keep the teeth whitening ads on the same network from now on. Thus, you will have to choose between Facebook Ads and Google AdWords.
You are only willing to continue the teeth whitening campaign with totally new ads on Facebook, that you will have to come up with.
The Facebook Ad Approval department disapproves 4/5 of your ads. You want 50 different ads up and running for targeting purposes and to test different ad copies.
Assume the Facebook approvals take 6 hours pr ad you submit. You only submit one at the time, since you're lazy. This means you wait for an approval or a disapproval before you submit your next ad. You will pause all ads until all 50 are approved.
Assume the stats via Facebook will be the same as previously, but take the lowered CTR (question 2) into consideration. The time you spend on adding new ads is the same time you would use to flip websites for a $ 1000 profit.
For AdWords you will use the same old ads.
Because of the recent negative against Acai you will have to tweak your landing page a little. You outsource this for $ 250 (sales letter & new LP design).
You are going to make 150 new Acai berry ads. This task will also be outsourced for $ 50, and is completed almost immediately. You are still going to use the ad network through which you have previously promoted it.
Question 3: Should you spend your money on the Acai berries or the Teeth Whitening campaign? Assume that you are to spend every penny of those $10 000. Show relevant calculations.
Assignment 3
You are in discussions with an advertiser for a special deal on affiliating their product. The advertiser pays you NET30 (30 days after the commission was registered). This means if you sent leads worth of $ 1000 in commissions one day, you are credited that amount 30 days later. Currently you send leads worth $ 40 000 in commissions every month.
You offer this deal to the advertiser:
"You can decrease my commissions by 1 % if you pay me NET10 from now on."
Under what condition does he accept your offer?
Assignment 4
You have a website that is budgeted to generate $ 27 000 in revenues pr year the next 4 years.
Webhost costs are $ 1 000 pr year. Advertising costs are $ 2 000 pr year.
You outsource the article writing for the website. You will put on 40 articles pr month, 25 of which are 600 words (per article). The rest are 1000 words per article.
You will pay the article writer $4/100 words.
It is expected that you can sell it for $ 25 000 in 4 years.
Someone is offering you $ 50 000 for the website now.
The rate of return is 10 %.
What do you do - sell it now or keep it running and then sell it after 4 years?
Assignment 5
You are an email marketer. You have observed the following:
Total emails sent pr week for 10 weeks: 49872, 52034, 47322, 56999, 48932, 43456, 53104, 50888, 45032, 49999
Total costs pr week for 10 weeks (the same weeks as above): 1500, 1743, 1388, 1844, 1599, 1333, 1900, 1011, 1803, 1800
You want to estimate a function for your total costs for a week as a function of sent emails that week. What is it?
Assignment 6
You buy a computer for $1500 and do not use it for a year. Assume that you can and do sell it for $1500 after that year.
Question 1: What did the computer cost you?
Now, forget the computer.
Question 2: Generally, in your decision making, should you care about absolute or relative prices?
Assignment 7
You are interested in a new niche you are wondering about Internet marketing a product in. Assume that the product's a priori probability for high demand (H) is 0.4. There is only high (H) and low (L) demand. You want to test the niche by PPC. The testing will give you an indication 'g' if the signal is good, and 'b' if the signal is bad. From your previous experience in testing new products in similar niches, the probability of a good indication is 60% given high demand, while the probability of a bad signal given low demand is 90%. Assume these measures are representable here too. If you decide to market the product you will have a 35 000 profits if there is high demand, and 5 000 profits if there is low demand. If you do not proceed in marketing the product your profits are 15 000 from other marketing activites, independent of the demand state for the product in question. Assume that you are risk neutral, i.e. you only care about expected profits. How much should you spend on testing the product in the niche?