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?

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

  2. Ad spend should always be 7% of revenue, which should be used as the target ROI

  3. Decrease the target cost-per-acquisition (CPA) for the campaigns from US$15 to US$10 to drive an increase in profit per customer

  4. 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

Udit Khanna

Udit Khanna is a Digital Marketing Course professional at Expert Training Institute, an expert in Digital Marketing, Search Engine Optimization, Pay Per Click, Social Media, etc. who helps companies attract visitors, convert leads, and close customers. Previously, Udit worked as a marketing professional for various startups and tech companies. He graduated with B.Sc from IGNOU with a dual degree in Business Administration (Marketing & Finance).

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