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NEW QUESTION 21
What will determine the results of your campaigns on the Facebook platform?
Select all that apply.
Choose ALL answers that apply.
Answer: A,C,D
Explanation:
Explanation
The Facebook main delivery system consists of three aspects:
* Auction: In the Facebook auction, you will be competing against thousands of advertisers worldwide.
They are all competing for one thing. End-users' space on the News Feed, Messenger, Audience Network, Video Ads, and mobile apps. It's just like a normal supply and demand function. The more advertisers competing for your time (demand), the more expensive it will become (supply). So the person willing to pay the most will get most impressions.
* Pacing System: Standard versus accelerated delivery makes a big difference in how your ads perform; especially in costs. Accelerated delivery will underperform your budget but allow you to spend your budget more quickly.
* Advertiser Controls: Obviously the size of your audience, budget, schedule, and type of ads will all affect the delivery of your ads.
Whenever you are running your campaigns, think of those three main areas with how they each will affect running your campaigns in the future.
NEW QUESTION 22
If you want to target two saved audiences for a product launch, how many campaigns and ad sets do you need?
Choose only ONE best answer.
Answer: C
Explanation:
Explanation
Keep in mind that you change audiences at the ad set level.
Depending on the number of audiences you target, that is how many ad sets you will need.
In this case, if you have 2 saved audiences, you will need two ad sets under the same campaign. So the correct answer is 1 Campaign + 2 Ad Sets.
NEW QUESTION 23
You have just gotten the results from a conversion campaign you ran for a membership site for 2 weeks:
There were 9 new customers acquired through the campaign.
Customers usually pay 6 months on average.
The monthly membership fee is $15.
The total amount you spent on the campaign was $400.
What is the ROAS for this campaign?
Choose only ONE best answer.
Answer: D
Explanation:
Explanation
Return on Ad Spend (ROAS) measures gross revenue generated directly for every dollar spent on the advertising campaign:
ROAS = Revenue From Ad Campaign / Cost Of The Ad Campaign
A more accurate way to calculate ROAS when you have recurring revenue is with the following formula:
ROAS = (# of new customers acquired from Campaign x LTV of a New Customer) - Cost of Ad Campaign In this case, you would need the following info:
# of new customer => 9
LTV of new customers => 6 * $15 = $90
Cost of Ad Campaign => $400
ROAS = 9 * $90 - $400 = $410
NEW QUESTION 24
After 6 weeks of running campaigns, you've spent exactly $11,958 total. You go to your data and realize that you've sold 64 smartwatches.
The mobile app works on a freemium model, where you can pay $0.99 a month for increased functionalities.
From the 64 people that bought the smartwatch, 50% are paying the monthly fee.
On average people pay the monthly fee for 12 months.
What is the ROAS for this campaign so far?
Choose only ONE best answer.
Answer: B
Explanation:
Explanation
ROAS = (# of new customers acquired from Campaign x Long-term Value of a New Customer) - Cost of Ad Campaign
* # of new customers => 64
Long Term Value for new Customers => is comprised of two parts:
* #1 Sales of the consumer watch: 64 * 250 = $16,000
* #2 Sales from subscriptions: 64 customers * $0.99 monthly fee * 12 months * 50% = $380.16 Total LTV = $16,380.16 Cost of Ad Campaign = $11,958 ROAS = $16,380.16 - $11,958 = $4,422.16
NEW QUESTION 25
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