CEC Digital Marketing & Customer Acquisition 3 — Questions and Answers
Question 1: 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?
- $0.25
- $0.33 (Correct answer)
- $0.50
- $1.00
Correct 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.
Question 2: Which strategy is most effective for reducing customer acquisition cost (CAC) over time?
- Increasing ad frequency
- Investing in brand building and organic channels (Correct answer)
- Running more promotional discounts
- Expanding to more ad platforms simultaneously
Correct 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.
Question 3: What is the purpose of a UTM parameter in digital marketing?
- To encrypt user data for GDPR compliance
- To track traffic source and campaign performance in analytics (Correct answer)
- To speed up page load times for mobile users
- To personalize ad creative dynamically
Correct 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.
Question 4: A customer sees a Facebook ad, then clicks a Google search ad, then converts. Under last-click attribution, which channel gets credit?
- Both equally
- Google paid search (Correct answer)
- Neither — split attribution is used
Correct answer: Google paid search
Last-click attribution assigns 100% of conversion credit to the final touchpoint before purchase, which was the Google search ad.
Question 5: Which ecommerce email automation has the highest average revenue per email sent?
- Weekly promotional newsletter
- Post-purchase review request
- Abandoned cart sequence (Correct answer)
- Re-engagement winback campaign
Correct answer: Abandoned cart sequence
Abandoned cart emails target high-intent shoppers who already selected products, producing industry-leading revenue per email.
Question 6: What is 'negative keyword' targeting in Google Ads used for?
- Blocking competitor brand names from your ads
- Preventing your ads from showing for irrelevant search queries (Correct answer)
- Reducing ad spend on low-performing products
- Excluding existing customers from seeing acquisition ads
Correct 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.
Question 7: In influencer marketing for ecommerce, which metric best predicts actual sales impact over follower count?
- Follower count
- Engagement rate (Correct answer)
- Post frequency
- Profile verification status
Correct 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.
CEC Digital Marketing & Customer Acquisition 3
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?