If four advertisers bid the amounts shown below, which advertiser will pay the m

Question

If four advertisers bid the amounts shown below, which advertiser will pay the most per click?

$3.48 CPM

$2.50 CPM

$2.06 CPC with a CTR of 0.2%

$3.00 CPC with a CTR of 0.1%

Ayisha has recently been on the Internet looking for a wedding gown. She is now on the Internet looking for camping supplies she will need for an upcoming trip. She notices display ads for wedding gowns on the camping-related sites. These advertisers are using

keyword targeting

placement targeting

interest targeting

topic targetin

$3.48 CPM

$2.50 CPM

$2.06 CPC with a CTR of 0.2%

$3.00 CPC with a CTR of 0.1%

Explanation / Answer

1). Here in the first two options, they are cost per impressions, so there they wont count any clicks generated. And the third person pays a rates of 2.06$ per click and the fourth option pays $3.00 per click and even the click through rates is also very low compared to third option. So option 4 pays more for every click that lead to website(through adwords)

So the answer is option 4. $3.00 CPC with a CTR of 0.1%

2). Placement targeting is the one which is quite suited here, because the advetiser knows the websites you visit, so they pop out ads of your interest whenever you visit that site. At the same time the topic, interest and keyword targeting are less related than placement targeting in this case.

So the answer is 2. Placement targeting

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