CASE BACKGROUND:Digiview, Inc. is a company that offers video streaming of entertainment content for an annual fee of $125. To promote its service, the company places a display advertisement on an entertainment magazine web site called E-Monthly.The E-Monthly web site offers two choices for placement of the ad.Option A: Cost-Per-Thousand (CPM) is $4.00 per 1000 impressions.Option B: Cost-Per-Click (CPC) is $0.25 per clickOf the 650,000 people who viewed the ad that Digiview placed on the E-Monthly web site, 10,400 people clicked the advertisement and were directed to the web site of Digiview.Of the 10,400 people who visited the web site of Digiview, 676 people completed on online form requesting more information on the video streaming service.Of the 10,400 people who visited the web site of Digiview, 2288 people left the site after viewing only one pageIf Digiview chose to place the ad on a CPC basis, what was the cost of the ad? (Show your calculations and final answer in the space below.)Of the people who visited Digiview’s web site after viewing the display ad on the E-Monthly web site, what was the bounce rate? (Show your calculations and final answer in the space below.)

CPM $4 Per Thousand Impressions CPC $0.25 Per Click Number of Impressions on E-Monthly…

Answered: Digiview, Inc. is a company that offers…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 40P

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CASE BACKGROUND:

Digiview, Inc. is a company that offers video streaming of entertainment content for an annual fee of $125. To promote its service, the company places a display advertisement on an entertainment magazine web site called E-Monthly.

The E-Monthly web site offers two choices for placement of the ad.
- Option A: Cost-Per-Thousand (CPM) is $4.00 per 1000 impressions.
- Option B: Cost-Per-Click (CPC) is $0.25 per click
Of the 650,000 people who viewed the ad that Digiview placed on the E-Monthly web site, 10,400 people clicked the advertisement and were directed to the web site of Digiview.
Of the 10,400 people who visited the web site of Digiview, 676 people completed on online form requesting more information on the video streaming service.
Of the 10,400 people who visited the web site of Digiview, 2288 people left the site after viewing only one page

If Digiview chose to place the ad on a CPC basis, what was the cost of the ad? (Show your calculations and final answer in the space below.)
Of the people who visited Digiview’s web site after viewing the display ad on the E-Monthly web site, what was the bounce rate? (Show your calculations and final answer in the space below.)

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