## Interview Question

Business Intelligence Analyst, Mid-Market Europe and Latin America Interview

-Barcelona

# Question 5 : An ad campaign has a CPC = \$0.5, a conversion rate = 3% and an average transaction value of \$260.What is the Cost of Sales of the campaign (cost of the ad campaign divided by the revenues generated, in percentage)? Question 6 : With a margin on revenues of 13%, an average transaction value of \$290 and a conversion rate = 0.7%, what is the maximum CPC an advertiser can afford without losing money (in dollar)? Question 7 : During his browsing, a user is randomly exposed to two ad banners A & B. Those two banners are equally likely to be shown. One and only one banner is shown per page. After two pages of browsing, what’s the probability that the user was shown only banners A (in percentage)? Question 8 : A/B Testing campaign: Measuring the impact of Criteo retargeting ads compared to a control group. Number of transactions on client site : • Group A exposed to Criteo banners 600,000 • Group B Control group not exposed 50,000a. b. What incremental revenues per user CompanyA has generated for the client advertiser (in dollar, rounded to the cent)? c. What total incremental revenues CompanyA has generated for the client advertiser? Total incremental revenue is simply the incremental revenue per user multiplied by the number of users exposed to Company A's retargeting. d. With \$200.000 revenues following clicks on banners for group A (post click), what is the related post view (view through) effect in revenues generated by CompanyA campaign? View through effects on revenues are a bit tricky as they would require view through conversion tracking. A post impression visit that results in a transaction can be credited as a 'view through conversion'. If CompanyA is not tracking revenue on post-impression ('view through') visits, then you can estimate it by taking the average revenue per transaction - in this case \$200,000 - and divide it by the number of post-click transactions in group A. This would give you the average revenue per transaction, often referred to as Average Order Value. You could then take the Average Order Value and multiply it by the number of view through conversions generated by Company A.

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Answer 5 CPC \$0.5 meaning each click cost \$0.5 Conversion rate of 3% means that for 100 clicks, 3 sales are done 100 clicks generate 3 x \$260 100 clicks = \$780 Cost = 100 * 0,5 = \$50 50/780 = 6,4%

Candidate on

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maxCPC: conversion rate x average transaction value x margin 0,007 x 290 x 0,13= 0,26 dollars

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