Data Analytics for Management Individual - IT Assignment Help

Assignment Task:

Task:

Question 1. Online Display Advertising (25%)

News.in is an online newspaper that provides links to selective news articles and also publishes its own material. The main revenue stream is from selling banner ads that are displayed on its website.

Banner ads are commonly sold based on a fixed charge per 1000 impressions (called CPM, which stands for cost per thousand impressions, where M refers to “mille”). An impression is the single instance when an online advertisement is displayed to a visitor of the website. This means that the advertiser pays a fixed price every time his ad is displayed regardless of whether the ad is clicked on. Another common pricing scheme is called CPC (cost per click). Under this scheme the advertiser only pays when a visitor to the website clicks on the ad.

a) (6%) New Market, an upscale supermarket, is planning to advertise its offers on News.in. What is the probability that it will receive at most 630 clicks on its ads if it buys 100,000 impressions?

b) (7%) News.in is considering offering a deal where it promises the advertiser to display his ad until 1,000 clicks have been made. How many impressions does it need to allocate to each contract if it wants to maintain a 98% service level?

c) (6%) News.in usually prefers to charge per impression while its customers (the advertisers) prefer to pay per click. Of course it depends on the prices charged in each case but overall the two parties have different preferences. Please explain why the two parties could have different preferences.

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