CEC Digital Marketing & Customer Acquisition 4 — Questions and Answers
Question 1: Which of the following best describes 'customer lifetime value' (CLV) in the context of acquisition budgeting?
- The total revenue generated in a single transaction
- The predicted net profit from a customer over their entire relationship (Correct answer)
- The cost to retain a customer for one year
- The average order value multiplied by annual purchase frequency
Correct answer: The predicted net profit from a customer over their entire relationship
CLV estimates the total net profit attributable to a customer over the full duration of their relationship with your brand.
Question 2: What is the primary function of a demand-side platform (DSP) in programmatic advertising?
- To host and serve banner ad creatives
- To automate the purchase of ad inventory across multiple exchanges (Correct answer)
- To track email open rates across campaigns
- To manage organic social media scheduling
Correct answer: To automate the purchase of ad inventory across multiple exchanges
A DSP allows advertisers to programmatically buy digital ad inventory across multiple ad exchanges through a single interface.
Question 3: Which content marketing format tends to generate the most backlinks and organic traffic for ecommerce brands?
- Product description pages
- Original research reports and data studies (Correct answer)
- Customer testimonial videos
- Weekly promotional blog posts
Correct answer: Original research reports and data studies
Original research and data studies are highly linkable assets that earn citations from journalists, bloggers, and industry sites.
Question 4: An ecommerce site sees 10,000 monthly visitors, 200 purchases, and $15,000 in revenue. What is the revenue per visitor?
- $0.75
- $1.00
- $1.50 (Correct answer)
- $2.00
Correct answer: $1.50
$15,000 revenue ÷ 10,000 visitors = $1.50 revenue per visitor.
Question 5: What distinguishes retargeting from prospecting in digital advertising?
- Retargeting uses video ads; prospecting uses static images
- Retargeting reaches previous site visitors; prospecting targets new audiences (Correct answer)
- Retargeting runs on social only; prospecting runs on search only
- Retargeting is cheaper per click than prospecting
Correct answer: Retargeting reaches previous site visitors; prospecting targets new audiences
Retargeting re-engages users who previously interacted with your site or ads, while prospecting seeks entirely new potential customers.
Question 6: Which Google Ads bidding strategy is most appropriate for an ecommerce advertiser focused on maximizing transaction volume within a fixed budget?
- Target impression share
- Maximize conversions (Correct answer)
- Manual CPC
- Target search page location
Correct answer: Maximize conversions
Maximize conversions uses machine learning to drive the highest number of conversions possible within your set daily budget.
Question 7: What is the primary benefit of using SMS marketing compared to email marketing for ecommerce promotions?
- Lower per-message cost
- Higher open rates (typically 90%+ vs 20-25%) (Correct answer)
- Better segmentation capabilities
- More detailed analytics reporting
Correct answer: Higher open rates (typically 90%+ vs 20-25%)
SMS messages are opened at rates of 90%+ compared to 20-25% for email, making them highly effective for time-sensitive promotions.
CEC Digital Marketing & Customer Acquisition 4
Which of the following best describes 'customer lifetime value' (CLV) in the context of acquisition budgeting?