Social Media Advertising Social Media Advertising Budget & ROI Optimization

Question 1

What does ROAS stand for in social media advertising?

Accepted Answer

Return on Ad Spend

Answer

Rate of Ad Spend

Answer

Reach of Advertising Strategy

Answer

Revenue of Audience Segment

Question 2

If a campaign spends $500 and generates $2,000 in revenue, what is the ROAS?

Accepted Answer

4x

Answer

2x

Answer

3x

Answer

5x

Question 3

What is the difference between a daily budget and a lifetime budget in social media ads?

Accepted Answer

Daily budgets cap spend per day; lifetime budgets cap total spend over the campaign duration

Answer

Daily budgets run only on weekdays; lifetime budgets run all week

Answer

Lifetime budgets auto-renew monthly; daily budgets do not

Answer

Daily budgets apply to video ads only; lifetime budgets apply to all formats

Question 4

What is Cost Per Click (CPC) measuring in a social media campaign?

Accepted Answer

The average amount paid each time a user clicks on an ad

Answer

The total number of clicks an ad receives

Answer

The percentage of users who click after seeing an ad

Answer

The cost to show an ad to 1,000 users

Question 5

Which bidding strategy is best suited for advertisers who want to maximize conversions within a fixed budget?

Accepted Answer

Lowest cost (automatic) bidding

Answer

Manual CPC bidding

Answer

Target ROAS

Answer

CPM bidding

Question 6

What does CPM stand for, and what does it measure?

Accepted Answer

Cost Per Mille; the cost to show an ad 1,000 times

Answer

Cost Per Message; the cost to send a sponsored direct message

Answer

Cost Per Minute; the cost of a 60-second video view

Answer

Conversion Per Month; monthly conversion rate