Your client's product costs £50 to produce and it sells for £150. They've sold 10 units and spent £700 on their AdWords campaign. How would you calculate their return on investment (ROI) to help them understand the benefit of using AdWords?

Your client's product costs £50 to produce and it sells for £150. They've sold 10 units and spent £700 on their AdWords campaign. How would you calculate their return on investment (ROI) to help them understand the benefit of using AdWords?

Answer

•  £1500 (revenue) / £1200 (cost + AdWords spend)
•  [£1500 (revenue) – £1200 (cost + AdWords spend)] / £1200 (cost + AdWords spend)
•  [£1500 (revenue) – 10 (number of products sold)] / £1200 (cost + AdWords spend)
•  [£150 (sales price) – £1500 (cost)] / £700 (AdWords spend)

Executives at a small e-commerce company are debating AdWords performance metrics. If the budget is unlimited as long as return on investment (ROI) is positive, which recommendation best positions the company for maximum profit?

Executives at a small e-commerce company are debating AdWords performance metrics. If the budget is unlimited as long as return on investment (ROI) is positive, which recommendation best positions the company for maximum profit?

Answer

•  Ad spend should always be 7% of revenue, which should be used as the target ROI.
•  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.
•  Determine whether the campaigns are profitable, then test different target cost-per-acquisition (CPA) bid increases to see which maximises total profit.
•  Decrease the target cost per acquisition (CPA) for the campaigns from £15 to £10 to drive an increase in profit per customer.

Which report and metric should you analyse to see how often your client's ads are appearing above search results in comparison with other advertisers?

Which report and metric should you analyse to see how often your client's ads are appearing above search results in comparison with other advertisers?

Answer

•  Ad group data that you customise with the Report Editor
•  Average position metric from the auction insights report
•  Top-of-page rate metric from the auction insights report
•  Ad average position metric from the paid and organic report

A client is asking you why they should evaluate the number of clicks on their search ads relative to the number of impressions received. What should you tell them?

A client is asking you why they should evaluate the number of clicks on their search ads relative to the number of impressions received. What should you tell them?

Answer

•  They can better understand whether potential customers find the ads appealing.
•  They can better understand what happens after potential customers click the ads.
•  They can get an idea of how many people who have seen their ads actually became customers.
•  They can get an idea of how many people double-clicked the ads.

Which statement is true?

Which statement is true?

Answer

•  Call-only ads only let people call the business.
•  Ads with call extensions only let people call the business.
•  Call-only ads are available exclusively on the Display Network.
•  Call extensions send people to a landing page with a phone number.

An advertiser enables target cost-per-acquisition (CPA) bidding and notices that conversions decrease. What might cause this?

An advertiser enables target cost-per-acquisition (CPA) bidding and notices that conversions decrease. What might cause this?

Answer

•  The target CPA bid was lower than the recommended amount.
•  The conversion-tracking code snippet was not added to the site.
•  The cost-per-click (CPC) bid was lower than the recommended amount.
•  The target CPA bid was higher than the recommended amount.

You can use target cost-per-acquisition (CPA) bidding to help:

You can use target cost-per-acquisition (CPA) bidding to help:

Answer

•  generate more clicks than manual bidding would generate.
•  get as many conversions as possible within a flexible budget range.
•  get as many clicks as possible within your budget.
•  get as many conversions as possible within your budget.