SEM Campaign Optimization and ROI 2

Question 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?

Accepted Answer

5:1, profitable

Answer

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

Question 2

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

Accepted Answer

Ad copy and landing page relevance

Answer

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.

Question 3

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

Accepted Answer

Poor expected CTR, ad relevance, or landing page experience

Answer

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.

Question 4

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

Accepted Answer

Ad rotation and creative refresh

Answer

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

Question 5

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

Accepted Answer

$37.50

Answer

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

SEM - Search Engine Marketing Practice Test

SEM - Search Engine Marketing Practice Test

SEM Campaign Optimization and ROI 2