Exam Flashcards

Anne-Marie’s business goal is to generate online sales of her handmade purses. Her AdWords costs are $100 per week and she wants to know if her advertising investment is paying off. What additional information do you need in order to calculate her return on investment (ROI)?

Answer: Costs to produce her purses and revenue generated from her ads

Return on Investment (ROI) is calculated as (Revenue - Cost) / Cost. To determine the true profit from her AdWords campaign, Anne-Marie needs to know not only her AdWords costs ($100) but also the revenue generated directly from those ads and the costs associated with producing the purses that were sold. This provides a complete picture of her net gain.

How do cost-per-click (CPC) ads compete with cost-per-thousand impressions (CPM) ads on the Display Network?

Answer: CPC bids are effectively converted to CPM bids

On the Google Display Network, all bids (including CPC, CPM, and CPV) are converted into an 'effective CPM' for the auction. This allows different bidding strategies to compete fairly against each other. The system estimates the number of clicks a CPC ad might receive and calculates an equivalent CPM value to determine its competitive strength.

Which of these metrics is especially important to clients who are running a branding campaign?

Answer: Impressions

Branding campaigns primarily aim to increase brand awareness and visibility among a target audience. Impressions are the most direct metric for measuring how many times an ad was shown, indicating the reach and exposure of the brand message. While other metrics are important for performance, impressions are key for gauging brand visibility.

If you want to direct people to specific pages on your website from an ad, you can create an ad that uses:

Answer: sitelink extensions

Sitelink extensions allow you to add additional links to specific pages of your website directly below your main ad text. This enables users to navigate straight to relevant sections like product categories, contact pages, or specific services, improving user experience and potentially increasing click-through rates by offering more options.

You can use Display Planner to:

Answer: see potential webpages where your ad can appear based on your keywords

Display Planner (now largely integrated into the Google Ads interface for Display campaigns) is a tool designed to help advertisers plan their Display Network campaigns. It provides insights into potential placements, showing where ads could appear based on targeting criteria like keywords, interests, and demographics, helping to discover relevant webpages and apps.

Higher Quality Scores typically result in:

Answer: lower costs and better ad positions

Quality Score is a diagnostic tool that measures the relevance and quality of your keywords, ads, and landing page. A higher Quality Score leads to a better Ad Rank, which means your ads can achieve higher positions on the search results page at a lower cost-per-click. Google rewards relevant and high-quality experiences for users, making advertising more efficient for those with good Quality Scores.

An advertiser looking to drive conversions is using manual cost-per-click (CPC) bidding. Which factor should be most important for this advertiser when deciding keyword bids?

Answer: The profit derived from a paid click

When using manual cost-per-click (CPC) bidding with a goal of driving conversions, the ultimate aim is to ensure profitability. Therefore, an advertiser should set keyword bids based on the profit generated by each conversion, which is directly tied to the profit derived from a paid click. This approach ensures that the cost of acquiring a customer through a click does not exceed the value that customer brings, making the campaign financially viable.

Which client would you advise to use radius targeting?

Answer: Denise, whose service can reach customers within 30 miles

Radius targeting allows advertisers to show their ads to customers within a specific geographical distance from a particular location. This targeting method is ideal for local businesses or service providers, like Denise, whose services are limited to a defined operational area. By setting a 30-mile radius, Denise can efficiently reach potential customers who are geographically able to utilize her service.

What is the recommended next step if you noticed from the Search terms report that certain terms are leading to a high number of clicks on your ads?

Answer: Make sure relevant search terms are keywords and adjust your bid or ad text for these keywords

The Search terms report reveals the actual queries users typed that triggered your ads. If certain terms are leading to a high number of clicks, it indicates strong user interest and relevance. The recommended next step is to add these relevant terms as keywords to gain better control over bidding and ad text, allowing for further optimization and improved performance for these high-performing searches.

You can use audience targeting to show your ads to:

Answer: specific groups of people, based on their interests

Audience targeting in Google Ads focuses on reaching specific groups of people based on various attributes beyond just keywords or demographics. This includes their interests, habits, what they are actively researching, or how they have interacted with your business previously. This allows advertisers to tailor their message to users who are most likely to be receptive to their ads.

You would choose to advertise on the Display Network if you wanted to:

Answer: show ads on websites related to your business

The Google Display Network (GDN) is designed to show visual ads across a vast network of websites, apps, and YouTube videos. Advertisers choose the Display Network primarily to reach users while they are browsing content related to their business or interests. This allows for brand awareness, remarketing, and contextual targeting on relevant websites, rather than showing ads on search results pages.

Conversion Optimiser can help drive conversions by using your conversion history and:

Answer: cost-per-acquisition (CPA) goals to show the optimal ad when a conversion is more likely

Conversion Optimizer, now often referred to as Target CPA bidding, is an automated bidding strategy that aims to get as many conversions as possible within a target cost-per-acquisition (CPA). It leverages historical conversion data and real-time signals to predict when a conversion is most likely to occur. Based on this prediction, it automatically adjusts bids and selects the optimal ad to show to maximize conversions within the set CPA goal.

Which statistic indicates how often a click has led to a conversion?

Answer: Conversion rate

Conversion rate is a key performance indicator (KPI) that directly measures the efficiency of your advertising efforts. It is calculated by dividing the number of conversions by the total number of clicks, then multiplying by 100 to get a percentage. This statistic precisely indicates how often a user who clicked on your ad went on to complete a desired action, such as a purchase or lead.

Negative keywords can help advertisers refine the targeting of their ads by: OR Negative keywords can help advertisers better target their ads by:

Answer: reducing the number of irrelevant clicks

Negative keywords are crucial for refining ad targeting by preventing your ads from showing for irrelevant search queries. By adding terms that are unrelated to your products or services, you ensure that your ads are only displayed to users who are genuinely interested. This reduces wasted ad spend on irrelevant clicks, improves your ad's clickthrough rate, and ultimately leads to more qualified traffic.

Your client is interested in switching from TV, print, and radio advertising. What are the return on investment (ROI) benefits of online advertising campaigns over traditional media advertising?

Answer: Traditional media is not always measurable, but online campaigns are highly measurable and you can analyze your click data

A significant advantage of online advertising over traditional media is its superior measurability and transparency. Online campaigns provide detailed data on impressions, clicks, conversions, and costs, allowing advertisers to precisely track their return on investment (ROI) and optimize in real-time. Traditional media often lacks this granular tracking, making it difficult to attribute specific results to ad spend and hindering effective optimization.

Target cost-per-acquisition (CPA) bidding can help drive conversions by using your conversion history and:

Answer: cost-per-acquisition (CPA) goals to raise your bid when a conversion is more likely

Target cost-per-acquisition (CPA) bidding is an automated strategy designed to help advertisers get as many conversions as possible at or below their target CPA. It uses your campaign's conversion history and real-time signals to predict the likelihood of a conversion. When a conversion is deemed more likely, the system automatically raises your bid to increase the chances of securing that conversion within your CPA goal.

When setting up a Search Network campaign for a client, you want her ad to get as many clicks as possible within her budget. Which bid strategy should you use to achieve this goal?

Answer: Maximize Clicks

The 'Maximize Clicks' bidding strategy is specifically designed to help advertisers get as many clicks as possible within their set budget. Google Ads automatically adjusts bids in real-time to achieve this goal, making it the ideal choice when the primary objective is to drive maximum traffic to a website. Other strategies like CPA or manual CPC focus on conversions or specific bid control, respectively.

You sell autographed sports memorabilia and want to reach people interested in sports. What’s one benefit of promoting your products with a ads in mobile apps campaign on the Display Network?

Answer: It allows you to show your ad on app categories that you choose

When promoting products like autographed sports memorabilia with ads in mobile apps on the Display Network, a key benefit is the ability to target specific app categories. This allows you to show your ads within apps that are relevant to sports, reaching users who have already demonstrated an interest in the subject. This focused targeting increases the likelihood of your ad being seen by potential customers.

How would you recommend that William set his budget if he wants to spend US $608 per month on his campaign? OR An advertiser has decided that they want to spend $608 per month for their campaign. How would you recommend they set their budget in their AdWords account?

Answer: Set a daily budget of $20 for the advertiser’s campaign

Google Ads budgets are set on a daily basis, not monthly. To determine the appropriate daily budget for a monthly spend of US $608, you divide the monthly amount by the average number of days in a month (approximately 30.4). Therefore, $608 / 30.4 equals $20, meaning William should set a daily budget of $20 for his campaign to spend around $608 per month.

Using the paid & organic report for her travel website, Karen noticed a relatively high organic clicks/query rate for the search query “Hawaii vacations.” What does this mean?

Answer: People who see Karen’s site in relevant organic search results often click through to her site

The organic clicks/query rate in the paid & organic report indicates how often users clicked on an organic search result for a specific query when it appeared. A high rate for 'Hawaii vacations' means that when Karen's website shows up in organic search results for that term, users frequently find it relevant and choose to click through to her site. This suggests strong organic visibility and appeal for that particular search query.