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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. Which metric best measures the efficiency of budget use across multiple campaigns in a portfolio?

    Answer: Portfolio ROAS or blended CPA across campaigns

    Portfolio-level ROAS or blended CPA aggregates performance across all campaigns, giving a true efficiency picture for total budget allocation decisions.

  2. What is 'budget cannibalization' in the context of SEM campaign management?

    Answer: When multiple campaigns compete for the same user queries, splitting budget inefficiently

    Budget cannibalization happens when overlapping campaigns target similar keywords, causing internal competition that drives up CPCs and splits conversions.

  3. An advertiser uses attribution model 'Last Click.' Which scenario would make a switch to 'Data-Driven Attribution' most beneficial?

    Answer: Users frequently research on multiple devices and ad touchpoints before converting

    Data-Driven Attribution uses machine learning to assign credit across all touchpoints, providing a more accurate picture when buyers take multi-step journeys.

  4. A SEM manager wants to calculate true profit from a campaign. Which cost is often missing from a basic ROAS calculation?

    Answer: Cost of goods sold (COGS)

    ROAS measures revenue vs. ad spend but ignores COGS, meaning a high ROAS campaign can still be unprofitable if product margins are thin.

  5. When using Google's Recommendation tab, what is the most important step before applying any recommendation?

    Answer: Evaluate whether the recommendation aligns with campaign goals before accepting

    Recommendations are algorithmically generated but not always aligned with specific business objectives; each should be reviewed critically against campaign KPIs before applying.

  6. What is the benefit of running Responsive Search Ads (RSAs) with at least 15 headlines and 4 descriptions?

    Answer: Google's machine learning can test more combinations to find top-performing ad variations

    More headlines and descriptions give Google's algorithm more combinations to test, improving the odds of matching a highly relevant message to each search query.

  7. A campaign with Target CPA bidding consistently hits 10% above the CPA goal. What is the recommended action?

    Answer: Gradually increase the Target CPA by 10-15% to give the algorithm more flexibility

    Smart bidding algorithms need headroom; if actual CPA consistently exceeds the target, raising the target slightly aligns expectations with reality while the algorithm optimizes.