Maximizing Advertising ROI using Linear Programming

  Рет қаралды 400

Ron Lembke

Ron Lembke

Күн бұрын

You have the following goals for your advertising efforts.
Maximize ROI of advertising spending, subject to the 8 constraints below.
Options Cost Number of Clicks Clicks per $ $ per Click Conversions (orders) Orders / $ Revenue (Total) ROI
Search ads $14,000 22,068 1.58 0.63 2,300 0.16 $225,776 15.13
Display ads $10,000 23,000 2.30 0.43 482 0.05 $35,000 2.50
KZbin ads $3,000 12,000 4.00 0.25 1,100 0.37 $23,000 6.67
Facebook $4,000 35,000 8.75 0.11 3,000 0.75 $135,000 32.75
Constraints ROI = Revenues - Expenses
1. Total budget = 20,000 Expenses
2. At least $2,000 of display ads
3. At least $2,000 of search ads
4. YT plus FB has to be at least 50% of the total
5. FB must be more than search
6. Search has to be at least 10%
7. Need at least 3,000 responses (conversions)
8. KZbin has to be at least 10%

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