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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

Below is the answer and explanation for the question 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

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

  • 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

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

explanation

Executive need to test keep experimenting with CPA bids until the maximum profit is achieved. Target CPA is a Google Ads Smart Bidding strategy that sets bids to help get as many conversions as possible at the target cost-per-acquisition (CPA) you set. 

Read more herehttps://support.google.com/google-ads/answer/6268632

The above question and explanation are related to Google ads search certification exam. You can find all the updated Google ads search certification answers on the “Google ads search assessment answers” page. If you find any error or update in question or answers, do comment below and let us know. We will update the answers as soon as possible.

Learn more about Google ads search certification answers: Google ads search skillshop.

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