You run both a search-ad campaign and a click-and-conversion display ad campaign for a product that your firm markets. The results of both campaigns are detailed below. The margin of each unit of product sold is $383, and consumers typically buy only one unit of the product at a time. Based on the return on investment of each campaign, which ad campaign is more effective for your firm in this case? Search Ad Campaign, Media spending $125,000, Impressions 3,436,481, Transactions 2,392, Click Through Rate 4.00%, Conversion Rate 1.74% Display Ad Campaign, Media spending $93,500, Impressions 28,956,632, Transactions 858, Click Through Rate 0.038%, Conversion Rate 7.89%.
The search ad campaign is more profitable.
The display ad campaign is more profitable.
Both ad campaigns are equally profitable.
It is impossible to determine which ad campaign is more profitable from this data.