CTR = (Clicks/Impressions) x 100

.15 = (16,797/110547) x 100

b. What is the CTR for the overall campaign?

.046 = (575,082/12,282,679) x 100

c. What is the CPC for the keyword, Xbox 360? Please illustrate the formula used to derive your answer.

Cost Per Click (CPC)

(Clicks/Cost) = CPC

28,564/$9,850.36 = $2.89

d. How many sales would it take to drive an $8 cost per acquisition (CPA) for the keyword, Rock Band 2, at the given spend level?

It would take 80 sales a day to drive an $8 cost per acquisition.

i. If the CPA increases to $11.00, what is your new max CPC?

$31.79

ii. What is the ROI based on a $5,402 profit?

32.5%

e. Given the attached campaign results, write an email to your client that highlights at least three insights or optimization recommendations...

It is highly recommended that the existing keyword advertisements be re-written for a more optimized set of keywords. Existing keyword advertisements are not performing at a profitable level today as a result.
2. The entire Q4 Shopping Campaign is inefficient and needs to be revamped with more effective use of keywords and better use of cost-per-click bidding. This would drive up the CTR for the entire campaign, which is exceptionally low today.

3. Consider using negative keywords to more effectively guide keyword searches on the Q4 Shopping Campaign as the relatively low click rate is driving down overall campaign performance