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Which of the following metrics would allow you to assess AdWords campaign profitability? (Select all that apply)

a) Revenue per Click
b) CTR
c) ROI
d) Margin
e) CPM

1 Answer

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Final answer:

To assess AdWords campaign profitability, metrics such as Revenue per Click, ROI, and Margin are most relevant. They provide direct information on financial performance, unlike CTR and CPM which don't measure profitability.

Step-by-step explanation:

To assess the profitability of an AdWords campaign, certain metrics are more informative than others. The metrics that would allow you to assess AdWords campaign profitability include:

Revenue per Click (RPC) - This measures the amount of revenue each click brings in, providing insight into whether the clicks are translating into profitable sales.

Return on Investment (ROI) - ROI calculates the efficiency of the investment by comparing the profit gained to the cost of the ads. A positive ROI indicates a profitable campaign.

Margin - This metric reflects the difference between the sales revenue and the costs of goods sold (including ad spend), which helps determine profitability.

Other metrics like Click-Through Rate (CTR) and Cost Per Thousand Impressions (CPM) provide valuable data about the effectiveness and cost-efficiency of a campaign but do not directly measure profitability.

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