Keyed Ad Test Results

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Analyzing Keyed Ad test results July, 2009

Baltimore City Cons, MD - IAR:

Baltimore City Cons, MD - IAR 2

Detailed Explanation:

Detailed Explanation 3 # Months Data: The number of months the report has data for. For this test we have call counts for the previous 4 months. Avg Actual Call/Month: The average amount of answered calls per month or Total # of calls divided by the number of months the test has been active for. 908/4 = 227 Projected Annual Calls: Estimated number of calls the number will receive annually or Average Actual Call per Month multiplied by the total length of test. 227*13 = 2,951 Annual Call vs. Goal Index: The number of annual calls against the goal index or Projected Annual Calls divided by Annual Success Goal multiplied by 100. (2,951/397)*100=743 Projected Annual Customers: Estimated number of customers the client will receive annually or Conversion Factor multiplied by Projected Annual Calls. 47%*2,951=1,387

Detailed Explanation (Part 2):

Detailed Explanation (Part 2) 4 Annual Cost/Call: Annual cost per call or the total Ad Cost divided by Projected Annual Calls. $9,860/2,951= $3.34 Annual Calls/M Distribution: Annual calls per one thousand books distributed or Projected Annual Calls divided by the Distribution of the book per thousand. 2,951/(344,459*1,000) = 8.6 Estimated Annual Revenue: Hypothesis of how much revenue the company will accumulate annually or Projected Annual Customers factored by Customer Value. 1,386.97 * $176= $244,107 Estimated Annual Profit: Hypothesis of how much profit the company will accumulate annually or % of Profit Margin by the Estimated Annual Revenue. 33% * $244,107= $80,555 ROI (Return on Investment): To deem a test successful a 1.1 ROI is required. So for every $1 you spend you receive $1.10 in return. Estimated Annual Profit/Ad Cost. $80,555/9,860=8.2

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