MO Marketing Officer Advertising & Campaign Performance Evaluation 2 — Questions and Answers
Question 1: A campaign achieves a 3% click-through rate on display ads. Industry benchmark is 0.1%. What is the most appropriate next step?
- Immediately scale budget to maximize reach (Correct answer)
- Investigate whether the audience targeting is too narrow and traffic quality is low
- Declare the campaign successful and close it
- Reduce the ad frequency to avoid banner blindness
Correct answer: Immediately scale budget to maximize reach
A CTR far above benchmark warrants scaling budget to capitalize on the strong performance before investigating further.
Question 2: Which metric best indicates whether a paid search campaign is generating profitable revenue relative to ad spend?
- Impression share
- Cost per click (CPC)
- Return on Ad Spend (ROAS) (Correct answer)
- Quality Score
Correct answer: Return on Ad Spend (ROAS)
ROAS measures revenue generated per dollar of ad spend, directly indicating campaign profitability.
Question 3: A/B testing two ad creatives, Creative A shows a 2.1% CTR and Creative B shows a 1.8% CTR after 500 impressions each. What should the marketing officer do?
- Immediately pause Creative B and allocate all budget to Creative A
- Continue the test until statistical significance is reached before making decisions (Correct answer)
- Split budget 50/50 permanently between both creatives
- Rewrite both creatives since neither exceeds 5% CTR
Correct answer: Continue the test until statistical significance is reached before making decisions
500 impressions is insufficient for statistical significance; decisions made on low-sample data risk acting on random variance.
Question 4: Which attribution model gives 100% conversion credit to the last marketing touchpoint before purchase?
- Linear attribution
- Time decay attribution
- Last-click attribution (Correct answer)
- Data-driven attribution
Correct answer: Last-click attribution
Last-click attribution assigns all conversion credit to the final touchpoint the customer interacted with before converting.
Question 5: A marketing officer notices the campaign's cost per acquisition (CPA) is rising week over week despite stable conversion rates. What is the most likely cause?
- Improving ad relevance scores
- Increasing competition driving up CPCs (Correct answer)
- Decreasing landing page load times
- Rising organic traffic offsetting paid results
Correct answer: Increasing competition driving up CPCs
When conversion rates are stable but CPA rises, the cost to generate clicks (CPC) must be increasing, typically due to greater auction competition.
Question 6: Viewability rate measures which of the following for display advertising?
- The percentage of ads that resulted in a click
- The percentage of ad impressions that were actually seen by users (Correct answer)
- The ratio of ad spend to total impressions served
- The percentage of users who recalled seeing the ad
Correct answer: The percentage of ad impressions that were actually seen by users
Viewability rate tracks the share of impressions where the ad met minimum visibility standards (e.g., 50% of pixels visible for 1 second).
Question 7: When evaluating a campaign's frequency capping strategy, what primary problem does setting too high a frequency cap help avoid?
- Underdelivery of impressions
- Ad fatigue leading to declining engagement and brand sentiment (Correct answer)
- Low reach across the target audience
- Insufficient budget utilization
Correct answer: Ad fatigue leading to declining engagement and brand sentiment
Excessively high frequency exposes the same audience to too many ad repetitions, causing fatigue, irritation, and declining performance.
A campaign achieves a 3% click-through rate on display ads.
Industry benchmark is 0.1%.
What is the most appropriate next step?