Marketing and Advertising Flashcards

What is a 'customer acquisition cost' (CAC) and how is it calculated for a dropshipping business?

Answer: Total marketing spend divided by number of new customers acquired

CAC is calculated by dividing total marketing spend by the number of new customers gained, revealing how cost-efficient your acquisition channels are.

Which type of Google advertising is most effective for capturing high-intent buyers already searching for your product?

Answer: Google Shopping Ads

Google Shopping Ads show product images and prices to users actively searching for related terms, capturing high purchase intent at the moment of search.

What is 'user-generated content' (UGC) and why is it valuable for dropshipping ad creatives?

Answer: Content created by real customers (photos, reviews, videos) used in ads to build authenticity

UGC (real customer photos and videos) performs strongly in ads because it looks authentic and relatable, outperforming polished studio-produced content.

What is the recommended strategy for scaling a winning Facebook ad in a dropshipping campaign?

Answer: Gradually increase the budget by 20–30% every 2–3 days

Gradual budget increases of 20–30% every few days allow the Facebook algorithm to adapt without resetting the learning phase and losing performance.

What does 'CPM' mean in digital advertising for dropshipping?

Answer: Cost Per Mille — the cost to show an ad 1,000 times

CPM (Cost Per Mille) is the price paid per 1,000 ad impressions and is a key metric for understanding the cost of audience reach on ad platforms.

Which strategy helps a dropshipping store reduce reliance on paid ads and build sustainable long-term traffic?

Answer: Building an SEO-optimized blog and email subscriber list

An SEO blog and owned email list generate recurring organic traffic and revenue that do not depend on advertising costs, creating long-term business resilience.