Please use the data provided to answer the following questions.
● Each question should be solved as a standalone, i.e. disregard all information given in the other questions.
● Please submit your answers on an Excel file through the website.
● Please add a short explanation about how you’ve reached your answers, use excel formulas so we will be able better analyze your way of thinking.
● Don't use solver or any other add-on, it isn’t needed and you won't get the right answer.
In the excel file you will find the database describing the daily activity of an online store. The store is aiming to drive traffic to its site through online advertisement, in order to generate sales of its products.
The store is selling 2 different products:
❖ Revenue from product 1 = 11$ per unit
❖ Revenue from product 2 = 30$ per unit
● Date = Date that the campaign was live
● Campaign = Name of campaign
● Cost = Advertising cost
● Visitors = Amount of people who clicked on the advertising ad and got to the online store website
● Sales of product1 = Percentage of the visitors who bought product 1
● Sales of product2 = Percentage of the visitors who bought product 2
In the following questions, evaluate the campaigns performance on a monthly (not daily) basis.
1. Which campaign showed the greatest improvement from September to December?
2. Assume that the monthly budget for November is $150K.
How would you allocate the budget between the campaigns to maximize profit?
You can invest as much as you want per each campaign, but no more than the amount that was invested originally.
3. Assume that the monthly budget for September is $150K.
How would you allocate the budget between the campaigns to maximize profit?
You can invest as much as you want per each campaign, but no more than the amount that was invested originally.
4. Assume November’s budget was already invested as detailed in the data, and you cannot change it. If your monthly budget for November was $500K, how would you allocate the rest of the money (on top of existing), knowing that:
a. Every additional 20% of visits per campaign will cost 20% more (per each visit) than the previous price per visit. [As depicted in graph below].
b. % of visitors that are buying product 1 and 2 stays the same.
5. Assume November’s budget was already invested as detailed in the data, and you cannot change it. You have additional 10k$ to invest, how would you allocate it (on top of existing), knowing that:
a. Every additional 20% of visits per campaign will cost 20% more (per each visit) than the previous price per visit. [As depicted in graph below].
b. % of visitors that are buying product 1 and 2 stays the same.
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