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Campaign Optimization and ROI Flashcards

7 cards from real SEM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Campaign Optimization and ROI flashcards as text

  1. A campaign has a Cost Per Acquisition (CPA) of $80 and a customer lifetime value (LTV) of $400. What is the LTV:CPA ratio, and is this campaign profitable?

    Answer: 5:1, profitable

    LTV:CPA = $400/$80 = 5:1, which is generally considered highly profitable since revenue far exceeds acquisition cost.

  2. Which optimization lever should you adjust first when your Search Impression Share is high but conversion rate is low?

    Answer: Ad copy and landing page relevance

    High impression share with low CVR indicates the ad is being seen but not compelling users to convert, so improving ad copy and landing page alignment is the priority.

  3. What does a Quality Score of 3/10 on a high-spend keyword most likely indicate?

    Answer: Poor expected CTR, ad relevance, or landing page experience

    Quality Score reflects three factors—expected CTR, ad relevance, and landing page experience—and a score of 3/10 signals weakness in one or more of these areas.

  4. An advertiser runs the same ad for 6 months without changes. Which optimization practice is being neglected?

    Answer: Ad rotation and creative refresh

    Ad fatigue sets in over time; regular creative refresh and A/B testing new ad variations is a core ongoing optimization practice.

  5. Your ROAS target is 400%. If your average order value is $150, what is the maximum CPA you can afford?

    Answer: $37.50

    Max CPA = Average Order Value / ROAS target = $150 / 4 = $37.50.

  6. Which Google Ads report is most useful for identifying search terms that are wasting budget on irrelevant clicks?

    Answer: Search Terms report

    The Search Terms report shows the actual queries that triggered your ads, allowing you to find and exclude irrelevant terms as negatives.

  7. A campaign's click-through rate drops after a competitor enters the auction. Which metric from Auction Insights would confirm this cause?

    Answer: Impression Share and Overlap Rate

    Auction Insights' Impression Share and Overlap Rate reveal how often competitors appear alongside or ahead of your ads, confirming increased competitive pressure.