Business

posted by .

Assume that WilyMarketer is running an email campaign to acquire new customers. It is considering two options:

Option A would use a high quality rental list of 100,000 email addresses. Direct costs under this option would be the rental list at $250/m and creative, program management and reporting costs will be $10,000. If Option A brings in 623 new customers, what is its customer acquisition cost?

Option B would rely on banner advertising at $20 CPM, which has a predicted click-through rate of 1.5 percent. The campaign is designed to reach 100,000 viewers, and its creative, program management and reporting costs will be $10,000. How many customers would Option B bring in and what is the customer acquisition cost?

  • Business -

    A: $1.74 per customer
    B: 1500 customers, $0.57 per customer

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. marketing opportunity cost

    Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity …
  2. math

    6. A lottery offers two options for the prize. Option A: $1000 a week for life Option B: $ 600 000 in one lump sum. The current expected rate of return for large investment is 7%/a, compounded weekly. a. Which option would the winner …
  3. BIS155 - Final Exam

    Fact Pattern Question 2: You own your own small party supply and rental business. You maintain an Excel list of potential customers and clients who have rented or purchased from you in the past two years. the list includes both physical …
  4. Math

    Suppose that a car rental agency gave you the following choices. Option A $30 per day plus 40ยข per mile Option B flat $50 per day (a) Write equations for cost per day c for options A and B. (Use m for distance in miles.) c = $ (option …
  5. Finance

    You are considering two lottery payment options: Option A pays $10,000 today and Option B pays $20,000 at the end of ten years. Assume youc an earn 6 percent on your savings. Which option will you choose if you base your decision on …
  6. Algebra 2

    Ahmad will rent a car for a day. The rental company offers two pricing options: Option A and Option B. For each pricing option, cost (in dollars) depends on miles driven, as shown below. Costindollars Milesdriven OptionA OptionB (a) …
  7. Algebra

    Business Computers English Foreign Languages Health Home Economics Math Music Physical Education Science Social Studies GRADE LEVELS Preschool Kindergarten Elementary School 1st Grade 2nd Grade 3rd Grade 4th Grade 5th Grade 6th Grade …
  8. Accounting

    ABC Corp Ltd has 10 million shares and $600,000 of debt (issues bonds @ 7% p.a.). EBIT is projected to be $3 million. The company tax rate is 20%.Preference shares pay an annual dividend of $100,000. Management is considering two options …
  9. accounting

    ABC Corp Ltd has 10 million shares and $600,000 of debt (issues bonds @ 7% p.a.). EBIT is projected to be $3 million. The company tax rate is 20%.Preference shares pay an annual dividend of $100,000. Management is considering two options …
  10. math

    A lottery offers two options for the prize. (7) Option A: $1000 a week for life. Option B: $600 000 in one lump sum. If you choose Option B, you have the opportunity to place the winnings into an investment that also makes regular …

More Similar Questions