Bazaar _BB.Management 6311 latest 2023 answered correctly
1. Myra and Bob discuss the notion that a branded search (e.g. “Bazaar shoes”) may result in
an organic click even when a paid ad is not present. Of course, this presumes Bazaar has an
organic link in the SERP. How would a non-branded search (e.g. “shoes”) affect this
conversation and what assumptions would be made?
Myra and Bob’s discussion relates to a case where the spend on specific and branded keywords
for paid advertisement on search engines is justified. Based on Bob’s calculation of ROI, when w
take Bazaar’s average purchase conversion and profit margin into account, the ROI numbers are
tremendous. Myra then points out that it might be a waste of money as these customers are
actually looking for Bazaar products only as they type in the word Bazaar so they may not lose
out on these customers as they will click on organic results also. Therefore it might not be worth
is spending all these dollars on paid search advertising with specific branded words, but if non-
branded words are used then paid search advertising might turn out useful as the customer
then is looking out for that product but not typed to any brand and it might be used as an
opportunity by Bazaar to tap that customer if there is a Bazaar ad that turns up.
We need to evaluate a few factors such as are the competitors of Bazaar running such paid ads?
The risk associated is if Bazaar does not purchase PPC, then there is a chance that a
competitor’s ad might show up in non branded searches and even if organically Bazaar has a
high SEO ranking the competitor’s ad will show up and Bazaar might lose out on its customer
In terms of non-branded search, a broad match for any term like “shoes” coupled with a
strong ad-rank would ensure that the customer reaches the Bazaar ad. Ad rank is usually a
function of the bid amount, time of the bid and the ad quality. If Bazaar’s advertisement CTR
and landing page relevance is high, the search engine will eventually increase its ad quality
score.
2. Based on the information provided in Exhibit 2, what data would you assess to
either confirm or challenge Bob’s ROI analysis?
Bazaar had sponsored ads only for nine weeks due to a glitch in their Google advertising and only
organic clicks in the last three weeks. The idea that Myra had was that if the organic clicks made
up for the missing sponsored clicks then the PPC was ineffective and turning out to be a waste of
money
Now we need to be careful when taking this assumption. There might be a seasonal component
to these organic sales. The effect of not continuing with PPC may be drowned out or falsely
attributed if the proper seasonality is not adjusted for. Also, some department at Bazaar may be
running a brand campaign that may be raising awareness and organic clickthrough to Bazaar.
These influences on CTR trends should be adjusted for when making decisions using data.
The data to look at to challenge Bob’s ROI calculations is what Myra also pointed out i.e. once
spending for sponsored advertisement stopped on Google, did organic clicks fill in the
gap? If so, then this would support the point that this is wasteful spending that should be
stopped across the board.
3. Based upon your approach in the previous question, what are your findings (the result
of your analysis) regarding paid search ROI? Clearly show your calculations and list any
assumptions that have been made.
Organic clicks on Google were hovering around 120-128k per week;
https://www.coursehero.com/file/117346016/Bazaar-BBdocx/
1. Myra and Bob discuss the notion that a branded search (e.g. “Bazaar shoes”) may result in
an organic click even when a paid ad is not present. Of course, this presumes Bazaar has an
organic link in the SERP. How would a non-branded search (e.g. “shoes”) affect this
conversation and what assumptions would be made?
Myra and Bob’s discussion relates to a case where the spend on specific and branded keywords
for paid advertisement on search engines is justified. Based on Bob’s calculation of ROI, when w
take Bazaar’s average purchase conversion and profit margin into account, the ROI numbers are
tremendous. Myra then points out that it might be a waste of money as these customers are
actually looking for Bazaar products only as they type in the word Bazaar so they may not lose
out on these customers as they will click on organic results also. Therefore it might not be worth
is spending all these dollars on paid search advertising with specific branded words, but if non-
branded words are used then paid search advertising might turn out useful as the customer
then is looking out for that product but not typed to any brand and it might be used as an
opportunity by Bazaar to tap that customer if there is a Bazaar ad that turns up.
We need to evaluate a few factors such as are the competitors of Bazaar running such paid ads?
The risk associated is if Bazaar does not purchase PPC, then there is a chance that a
competitor’s ad might show up in non branded searches and even if organically Bazaar has a
high SEO ranking the competitor’s ad will show up and Bazaar might lose out on its customer
In terms of non-branded search, a broad match for any term like “shoes” coupled with a
strong ad-rank would ensure that the customer reaches the Bazaar ad. Ad rank is usually a
function of the bid amount, time of the bid and the ad quality. If Bazaar’s advertisement CTR
and landing page relevance is high, the search engine will eventually increase its ad quality
score.
2. Based on the information provided in Exhibit 2, what data would you assess to
either confirm or challenge Bob’s ROI analysis?
Bazaar had sponsored ads only for nine weeks due to a glitch in their Google advertising and only
organic clicks in the last three weeks. The idea that Myra had was that if the organic clicks made
up for the missing sponsored clicks then the PPC was ineffective and turning out to be a waste of
money
Now we need to be careful when taking this assumption. There might be a seasonal component
to these organic sales. The effect of not continuing with PPC may be drowned out or falsely
attributed if the proper seasonality is not adjusted for. Also, some department at Bazaar may be
running a brand campaign that may be raising awareness and organic clickthrough to Bazaar.
These influences on CTR trends should be adjusted for when making decisions using data.
The data to look at to challenge Bob’s ROI calculations is what Myra also pointed out i.e. once
spending for sponsored advertisement stopped on Google, did organic clicks fill in the
gap? If so, then this would support the point that this is wasteful spending that should be
stopped across the board.
3. Based upon your approach in the previous question, what are your findings (the result
of your analysis) regarding paid search ROI? Clearly show your calculations and list any
assumptions that have been made.
Organic clicks on Google were hovering around 120-128k per week;
https://www.coursehero.com/file/117346016/Bazaar-BBdocx/
