Google AdWords Search Advertising exam question 5:
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?
- The company’s email campaigns are the most profitable, with a cost-per-acquisition of US$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 US$15 to US$10 to drive an increase in profit per customer
- Determine whether the campaigns are profitable, then test different target cost-per-acquisition (CPA) bid increases to see which maximizes total profit
- Ad spend should always be 7% of revenue, which should be used as the target ROI
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