question 7 of 10: a social media ad costs $2 per person reached and 60% purchase. a traditional media ad…

question 7 of 10: a social media ad costs $2 per person reached and 60% purchase. a traditional media ad costs $0.10 per person reached and 2% purchase. which is more effective?\na) social media\nb) traditional media\nc) neither\nd) both

question 7 of 10: a social media ad costs $2 per person reached and 60% purchase. a traditional media ad costs $0.10 per person reached and 2% purchase. which is more effective?\na) social media\nb) traditional media\nc) neither\nd) both

Answer

Explanation:

Step1: Calculate purchase - cost ratio for social media

Let's assume we reach 1 person. Cost for social media is $2, and the number of purchases is $0.6$ (since 60% purchase). The purchase - cost ratio for social media is $\frac{0.6}{2}= 0.3$.

Step2: Calculate purchase - cost ratio for traditional media

For traditional media, cost per person reached is $0.10$, and the number of purchases is $0.02$ (since 2% purchase). The purchase - cost ratio for traditional media is $\frac{0.02}{0.10}=0.2$.

Step3: Compare the ratios

Since $0.3>0.2$, social media is more effective.

Answer:

A. Social media