The CPM and CPC rates of a publisher of display ads is $100 and $10, respectively. The average CTR of display ads is 0.80%. Which of the two buying models will be more profitable for the marketer/advertiser and which model should the publisher choose for selling ad inventory?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter10: Digital Marketing And Social Networking
Section10.2: Dollar Shave Club Faces Sharp Competition
Problem 2C
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The CPM and CPC rates of a publisher of display ads is $100 and $10, respectively. The average CTR of display ads is 0.80%. Which of the two buying models will be more profitable for the marketer/advertiser and which model should the publisher choose for selling ad inventory?

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ISBN:
9780357033791
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Pride, William M
Publisher:
South Western Educational Publishing