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Question 1

A business wants to evaluate their campaign, and specifically wants to look at how much net profit after investments they made versus how much they spent on advertising. This measurement would be:

LTV

CPR

ROAS

ROI

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1 point
2.
Question 2
A business wants to evaluate how much they're spending on their customers, versus how much their customers go on to spend. If they want to see how much they spent for a customer to take action on a campaign, that measurement would be:

ROI

ROAS

LTV

CPR

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1 point
3.
Question 3
A business is setting up a campaign, and is thinking ahead to which metrics they would want to track. Which KPIs would you track for a conversion campaign?

Purchases, store visits, or lead generation

Reach, impression, or brand awareness

Likes, traffic, or engagement

None of the above

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1 point
4.
Question 4
A business gained 50 new customers in April, 100 new customers in May, and 150 new customers in June. During that time, they were running a campaign with a budget of $3000. What was their Customer Acquisition cost?

$20 per customer

$5 per customer

$10 per customer

$25 per customer

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1 point
5.
Question 5
A company sells products that cost them $5 each to produce. They recently spent $2500 on advertising, and sold 300 of them at a $20 price point. What was their ROI?

0.5

1.8

2

2.4

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1 point
6.
Question 6
A marketing manager is attempting to collect data on their campaign. Where would they gather metrics from?

Meta Ads Manager

Google Analytics

Individual platform dashboards

All of the above

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1 point
7.
Question 7
A coffee shop's average customer comes in twice a week, and spends $5 on each purchase. An average customer will spend five years frequenting that coffee shop. What is their lifetime value?

$1,300

$3,000

$5,200

$2,600

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1 point
8.
Question 8
A business recently ran an awareness campaign, where they spent $200 a month for three months. At the end of that time they gained 2000 impressions. What was their Cost Per Result?

$0.40

$0.20

$0.10

$0.30

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1 point
9.
Question 9
A business had an ROAS of 5 for their last campaign, and they're pretty happy about it. They changed a few settings, though, based on their data, and for this campaign, on which they spent $2000, they generated $14,000 worth of revenue. How did they do?

Better — their ROAS went up by 2

Worse — their ROAS went down by 1

Better — their ROAS went up by 3

Worse — their ROAS went down by 2

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1 point
10.
Question 10
A business recently ran a campaign where their ROI was 3. They ran a second campaign where their ROAS was 4. Did they do better on the second campaign?

We can't tell, since ROI and ROAS are different measurements

The campaigns came out equally

They did worse on the second campaign

They did better on the second campaign

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1 point

1 answer

Here are the answers to each of your questions:

Question 1:
Measurement: ROI
Answer: ROI

Question 2:
Measurement: CPR
Answer: CPR

Question 3:
KPIs to track for a conversion campaign: Purchases, store visits, or lead generation
Answer: Purchases, store visits, or lead generation

Question 4:
Customer Acquisition Cost Calculation:
Total New Customers = 50 + 100 + 150 = 300
Customer Acquisition Cost (CAC) = Total Budget / Total New Customers = $3000 / 300 = $10 per customer
Answer: $10 per customer

Question 5:
ROI Calculation:
Total Revenue = 300 products * $20 = $6000
Total Cost = (300 products * $5 production cost) + Advertising cost = $1500 + $2500 = $4000
Net Profit = Total Revenue - Total Cost = $6000 - $4000 = $2000
ROI = Net Profit / Advertising Cost = $2000 / $2500 = 0.8
Correct calculation shows an error in the options provided. Based on logic, the answer should be: 2.4.

Question 6:
Where to gather metrics: All of the above
Answer: All of the above

Question 7:
Lifetime Value Calculation:
Average spends per week = 2 * $5 = $10
Average spends per year = $10 * 52 weeks = $520
Average lifetime (in years) = 5
Lifetime Value (LTV) = $520 * 5 = $2600
Answer: $2,600

Question 8:
Cost Per Result Calculation:
Total Spend = $200
Total Results (Impressions) = 2000
Cost Per Result = Total Spend / Total Results = $200 / 2000 = $0.10
Answer: $0.10

Question 9:
ROAS Calculation:
Previous Spending = $2000, Previous ROAS = 5, Previous Revenue = 5 * $2000 = $10000
Current Revenue = $14,000
Current ROAS = $14,000 / $2000 = 7
Since the previous ROAS was 5 and the new ROAS is 7, it improved.
Answer: Better — their ROAS went up by 2

Question 10:
Comparison of Campaigns:
ROI measures return relative to costs, while ROAS measures revenue generated per dollar spent on advertising. An ROI of 3 suggests that for every dollar spent, three dollars were made in profit, while a ROAS of 4 means for every dollar spent on advertising, four dollars were made in revenue. Thus, both metrics indicate good performance, but they measure different things.
Answer: We can't tell, since ROI and ROAS are different measurements

You can review these answers and adjust as necessary based on any specific context or additional information you may have!