PPC Budget and ROI Management Flashcards

What is a PPC budget pacing strategy?

Answer: Controlling the rate at which ad spend is distributed throughout a day or campaign period

Budget pacing ensures your ad spend is distributed evenly or strategically throughout the day/campaign period so you do not exhaust funds too early or fail to spend what is available.

In PPC, what does 'marginal ROAS' refer to?

Answer: The incremental return generated by spending one additional dollar on ads

Marginal ROAS measures the return generated by the next additional dollar of ad investment, helping advertisers determine whether increasing spend will be profitable.

Which scenario would most justify increasing a Google Ads campaign's daily budget?

Answer: The campaign is losing significant impression share due to budget

If a campaign regularly exhausts its budget before the day ends and has a positive ROAS or acceptable CPA, increasing the budget can capture more conversions that were previously missed.

What is 'wasted spend' in PPC campaign management?

Answer: Budget consumed by clicks that do not lead to conversions or desired outcomes

Wasted spend refers to the portion of ad budget spent on clicks from irrelevant searches, low-intent users, or other poor-quality traffic that does not convert.

What does 'budget utilization rate' measure in PPC management?

Answer: The percentage of the daily or monthly budget that has been spent

Budget utilization rate is the percentage of your available ad budget that has actually been spent, helping managers identify under-spending or over-spending issues.

What is the purpose of monthly budget caps at the account level in Google Ads?

Answer: To set a hard ceiling on total account spend to prevent billing surprises

Account-level monthly spend limits act as a safeguard to prevent total ad spend from exceeding a predefined ceiling, protecting against unexpected overspend due to traffic spikes.