What is the difference between a click-through rate and a conversion rate? Explain why marketers may want to use both metrics
What will be an ideal response?
A click-through rate indicates the percentage of viewers of a website ad who click on the ad and are then taken to the product's webpage. This metric identifies who was interested enough to click on the ad, but it doesn't identify who took action on the product's webpage. This information can be found by calculating the conversion rate, which compares the total number of desired actions taken by viewers of the site to the total number of visitors to the website.
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Which of the following is NOT a pricing decision?
a. How large is the demand potential at a given price? b. How sensitive is demand to changes in price levels? c. What is the most effective way of communicating a price increase? d. What are sales forecasts at various price levels? e. What should be the price for introducing a new product?
Marco is working on promoting his company's Glazer brand of electronic razors. The company estimates 50 million potential users and sets a target of attracting eight percent of the market
Marco sets an objective of reaching 80 percent of the potential customers with an advertising message that results in 25 percent of the brand-aware prospects trying the Glazer. He further estimates that 40 percent of all triers will become loyal users, and the cost of exposing one percent of the target population to one impression is $4500. What is the advantage of Marco's budgeting method, and why do you think marketers sometimes prefer methods without this advantage?