SEM Campaign Optimization and ROI 5

Question 1

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

Accepted Answer

Portfolio ROAS or blended CPA across campaigns

Answer

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

Question 2

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

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

Users frequently research on multiple devices and ad touchpoints before converting

Answer

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

Question 4

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

Accepted Answer

Cost of goods sold (COGS)

Answer

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

Question 5

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

Accepted Answer

Evaluate whether the recommendation aligns with campaign goals before accepting

Answer

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

SEM - Search Engine Marketing Practice Test

SEM - Search Engine Marketing Practice Test

SEM Campaign Optimization and ROI 5