Executives at a small e-commerce company are debating Google Ads performance metrics. If the budget is unlimited as long as return on investment (ROI) is positive

Google Ads search Certification answer
  • Ad spend should always be 7% of revenue, which should be used as the target ROI
  • Determine whether the campaigns are profitable, then test different target cost-per-acquisition (CPA) bid increases to see which maximizes total profit
  • The company’s email campaigns are the most profitable, with a cost-per-acquisition of £15, so it should use that as a benchmark when setting target cost-per-acquisition (CPA) bids
  • Decrease the target cost-per-acquisition (CPA) for the campaigns from £15 to £10 to drive an increase in profit per customer

Correct Answer is : Determine whether the campaigns are profitable, then test different target cost-per-acquisition (CPA) bid increases to see which maximizes total profit

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