Instructions

Read the following information and the accompanying graphs to answer the questions that follow.
www.jay.com spent $ 5,57,000 during last 12 months for online display advertisements, also called impressions, on five websites (Website A, Website B, Website C, Website D and Website E). In this arrangement, www.jay.com is the Destination Site, and the five websites are referred to as the Ad Sites. The allocation of online display advertising expenditure is shown in Graph A. The online display advertisements helped www.jay.com to get visitors on its site. Online visitors, visiting the Ad Sites, are served display advertisements of www.jay.com and on clicking they land on the Destination Site (Graph B). Once on the Destination Site, some of the visitors complete the purchase process(Graph C)

Quality traffic = $$\frac{\text{No. of site visitors who start purchase on destination site}}{\text{No. of visitors who click the online display advertisement}}$$

Leakage in online buying = 1 − $$\frac{\text {Complete buying on the destination website}}{\text{Start buying on the destination website}}$$

Efficiency of online display advertising expenditure on an Ad Site = $$\frac{\text{No. of visitors from the Ad Site who complete the purchase process}}{\text{Amount spent on the Ad Site}}$$

Question 87

Which Ad Site sent traffic to www.jay.com with maximum leakage?

Solution

Let's calculate the Leakage in online buying by using the formula, 

Leakage in online buying = 1 − Complete buying on the destination websiteStart buying on the destination website\frac{\text {Complete buying on the destination website}}{\text{Start buying on the destination website}}

For Website B = 1-(1200/2500)= 0.52

For Website C = 1-(900/2000)= 0.55

For Website D = 1-(1300/3000)= 0.5667

For Website E = 1-(1600/3500)= 0.5428

For Website D the leakage is maximum .

Hence C is the correct answer.


Video Solution

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