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

Rebecca
Rebecca
1 Min Read

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, which recommendation best positions the company for maximum profit?

  • 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

The 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

Read more: Having launched her first Search campaign, Asha wants to know just how many calls are being generated from the number in her ads, on her website, or clicks on a phone number on her mobile website.

 

 

For website maintenance service contact us.

Share this Article
Posted by Rebecca
Follow:
Rebecca is an Independent content writer for breldigital, She writes content on any given topic. She loves to write a case study article or reviews on a brand, Be it any topic, she nails it
Leave a comment

Leave a Reply