Question

Please answer the following questions after reviewing the data on the Excel sheet. Situation: A Ford car dealership is preparing the release of a new Ford Focus model. In anticipation of the release date, they decide to launch a digital marketing program with a budget of $100,000. Historical evidence suggests that getting prospect customers to test drive the car is the most efficient way to generate sales - so they set the program's goal to achieve 250 test drives. For simplicity: - the company will be using email marketing as well as placing banners on Autotrader.ca. They will invest the $100 k equally on the two campaigns. - they will focus their effort on generating as many CTR to drive traffic to the company website, and their visitors are offered the opportunity to fill out a form and sign-up for the test drive...specifically targeting 30-45 year olds Email marketing database: Database distribution by age bracket: 15-24 10,000 25-30 10,000 30-34 12,500 35-45 15,500 >45 2,000 The company's experience with their ESP suggests the following conversions: - email bounce rate 20% - CTR 50% - cost per email: $2.5 - share on social media 25% - % emails forwarded 20% Total 50,000 Company website: Historically the website showed the following numbers: - visitors only came through marketing campaigns (ex email and banner) - 40% bounce rate - 25% of visitors filled in personal details from email CTRs - 15% of visitors filled in personal details from Banner advertising - 20% of those who provided personal details through email requested a test drive - 15% of those who provided personal details through banner requested a test drive Banners on Autotrader.ca: Audience % unique visits CTR (similar campaigns) 15-24 2,51,000 32% 0.5% 25-30 4,53,500 42% 2.5% Uniques Clicks? 30-34 4,30,750 40% 1.8% 0 35-45 4,63,000 41% 3.7% 0 45-54 1,88,750 34% 12.0% 55-64 1,03,500 32% 13.3% >65 1,57,750 28% 14.5% Total 20,48,250 Cost per 1000 impressions: $50 For actions to be performed, each member of the audience needs to see the ad three times. What is the campaign objective? What are the campaign goals? What are the relevant KPIs? All emails 0 Paid banners 0 $ - Net emails 0 Unique 0 CLICK 0 0 CPC #DIV/0! #DIV/0! Net website 0 0 Fill form 0 0 Test drive 0 0 Email funnel Calculate the number of emails that can be sent. Consider the email budget and divide it by cost per email. Calculate the number of net emails delivered by considering the email bounce rate. Calculate the number of clicks by multiplying net emails by email CTR. Calculate the CPC by dividing the budget by number of clicks. Calculate the net website visitors by multiplying clicks by bounce rate. Calculate the number of visitors who fill out the form by the percentage of who fills out the form. Calculate the number who take the test drive by multiplying the percentage. Banner funnel Calculate the number of unique visits for each target t age cohort i.e. 30-45 year olds. Multiply by three to calculate the total impressions as each visitor needs to see the ad three times. Calculate clicks by multiplying each ad. Sum the two groups to collect the total clicks. Calculate the cost of the banner campaign. Consider the CPI - Cost per Impressions. Calculate the CPC. Consider dividing the budget by the number of clicks. Calculate the net website visitors by multiplying the clicks by the bounce rate. Calculate the number of visitors who fill out the form by the percentage who fill out the form. Evaluate and Optimize the Two Campaign Funnels Which campaign delivered more test drives? Which campaign costs more? If you worked for Ford, what would you suggest or do next time?

Answer 1

The campaign objective is to generate 250 test drives for the new Ford Focus model. The campaign goals include sending out emails and placing banners on Autotrader.ca, targeting 30-45 year olds. The relevant Key Performance Indicators (KPIs) are the number of net emails delivered, clicks, cost per click (CPC), net website visitors, form fills, and test drives.

Step-by-step explanation:

In order to achieve the campaign objective, we need to analyze both the email marketing and Autotrader.ca banner campaigns.

For the email marketing campaign:

1. Calculate the number of emails: $100,000 / $2.5 per email = 40,000 emails.

2. Adjust for bounce rate: 40,000 emails * (1 - 20%) = 32,000 net emails.

3. Calculate clicks: 32,000 net emails * 50% CTR = 16,000 clicks.

4. Calculate CPC: $100,000 / 16,000 clicks = $6.25 CPC.

5. Estimate net website visitors: 16,000 clicks * (1 - 40% bounce rate) = 9,600 visitors.

6. Estimate form fills: 9,600 visitors * 25% = 2,400 form fills.7. Estimate test drives: 2,400 form fills * 20% = 480 test drives.

For the Autotrader.ca banner campaign:

1. Calculate total impressions: 15-24 age group → 2,51,000 * 3 = 7,53,000 impressions.

2. Summing impressions for the 30-45 age group: 4,30,750 + 4,63,000 = 8,93,750 impressions.

3. Calculate clicks: 8,93,750 impressions * (32% CTR / 100) = 285,200 clicks.

4. Calculate CPC: $100,000 / 285,200 clicks = $0.35 CPC.

5. Estimate net website visitors: 285,200 clicks * (1 - 40% bounce rate) = 171,120 visitors.

6. Estimate form fills: 171,120 visitors * 15% = 25,668 form fills.

7. Estimate test drives: 25,668 form fills * 15% = 3,850 test drives.

In conclusion, the Autotrader.ca banner campaign is projected to deliver more test drives (3,850 vs. 480 from email marketing), making it a more efficient channel for achieving the campaign objective. However, a cost comparison is necessary to determine the overall effectiveness, considering the budget allocation and cost per test drive.