Digital Marketing & Customer Acquisition Flashcards

An ecommerce store has a 2% conversion rate and $50 average order value. If CPC is $1.00, what is the maximum CPC to maintain a 3:1 ROAS?

Answer: $0.33

With 2% CVR and $50 AOV, revenue per click = $1.00; at 3:1 ROAS, max CPC = $1.00 ÷ 3 = $0.33.

Which strategy is most effective for reducing customer acquisition cost (CAC) over time?

Answer: Investing in brand building and organic channels

Brand equity and organic channels like SEO and word-of-mouth lower long-term CAC by reducing reliance on paid media.

What is the purpose of a UTM parameter in digital marketing?

Answer: To track traffic source and campaign performance in analytics

UTM parameters append tracking data to URLs, enabling analytics platforms to attribute traffic to specific campaigns, sources, and mediums.

A customer sees a Facebook ad, then clicks a Google search ad, then converts. Under last-click attribution, which channel gets credit?

Answer: Google paid search

Last-click attribution assigns 100% of conversion credit to the final touchpoint before purchase, which was the Google search ad.

Which ecommerce email automation has the highest average revenue per email sent?

Answer: Abandoned cart sequence

Abandoned cart emails target high-intent shoppers who already selected products, producing industry-leading revenue per email.

What is 'negative keyword' targeting in Google Ads used for?

Answer: Preventing your ads from showing for irrelevant search queries

Negative keywords prevent your ads from triggering on searches that are irrelevant to your offerings, improving campaign efficiency.

In influencer marketing for ecommerce, which metric best predicts actual sales impact over follower count?

Answer: Engagement rate

Engagement rate reflects how actively an audience interacts with content, which is a stronger predictor of conversion potential than raw follower count.