MKT 5255 Motorcowboy Case Study 2021

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Motorcowboy Case Study 1. The equestrian campaign had an average cost per click (CPC) of $0.61. If the average price for a pair of cowboy boots is $550, with a 50% margin, what percentage of those ... clicking on an ad need to purchase a pair of boots in order to breakeven? (Wen) Average CPC = $0.61 Average price per pair of cowboy boots = $550 Margin = 50% Therefore Cost = $550*50* = $275 This means that profit = $275 per pair of boots Each click costs the company $0.61, therefore, to find how many clicks = $275, we divide the two. = 275/0.61 = 450.82 clicks ~ 451 Therefore, 451 clicks cost a grand total of $275. Now assuming that for every 451 clicks, there is one purchase we conclude that to breakeven, 451 clicks will cost $275 and a purchase also makes a profit of $275 – this is the breakeven point. Therefore, the percentage of those clicking on an ad need to purchase a pair of boots to break even is: (1/451)*100 = 0.2217% 2. What does this mean for the campaign? For the campaign this can actually be very useful and quite worthwhile since relative cost is inexpensive and the percentage needed to breakeven (0.2217%) is low. Maddux’s estimations [Show More]

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