Final answer:
To calculate the cost-per-click of a social media advertising campaign, you must know the flat membership fee, pay-per-click fee, number of advertisement clicks, and graphic design outsourcing costs. The formula is CPC = (Flat Fee + Design Costs + (Pay-Per-Click Fee x Number of Clicks)) / Number of Clicks. Accurate tracking of costs and clicks is essential for a correct calculation.
Step-by-step explanation:
To calculate the cost-per-click (CPC) of Drew’s social media advertising campaign, there are several pieces of information required:
- The flat membership fee charged by the social media site.
- The specific pay-per-click fee that the site charges for each advertisement click.
- The total number of clicks the advertisement received over a given period.
- The total costs for outsourcing the graphic design of the ads.
Once these costs are known, the cost-per-click can be calculated by adding the flat membership fee and the graphic design costs to get the total fixed cost. Then, you add this total to the amount spent on the actual clicks (pay-per-click fee multiplied by the number of clicks), giving you the total cost of the campaign. To find the cost-per-click, you divide this total cost by the number of clicks received:
CPC = (Flat Fee + Design Costs + (Pay-Per-Click Fee x Number of Clicks)) / Number of Clicks
It is crucial to accurately track all expenses and clicks to ensure that the calculated CPC reflects the real cost of the campaign. Moreover, understanding the CPC helps Drew make informed decisions about the campaign's effectiveness and budgeting for future advertising efforts.