Estimate profit-per-conversion before advertising expenses

[box]Download PDF

  • Google Search Advertising Exam – All Q&As
  • * Updated on 25-Apr-2019
  • * 100% Moneyback Guarantee
  • * 100% Legitimate to use for Exam

[purchase_link id=”1852″ style=”button” color=”red” text=”Download Search Exam’s Answersheet” direct=”true”][/box]

Jane’s e-commerce site sells a wide variety of bicycle equipment. She wants to estimate her profit-per-conversion for each ad group to get a sense of which ad groups are immediately profitable in the short term. Which formula best estimates Jane’s profit-per-conversion before advertising expenses?

  • (Avg CPC) * (Conversion Rate)
  • (Avg Profit per Order) * (Conversion Rate)
  • (Avg Revenue per Order) * (Profit Margin)
  • (Total Profit) / (Total Revenue)

The correct answer is:

  • (Avg Revenue per Order) * (Profit Margin)

Explanation: Profit need to be calculated without ad expenses. It means conversion rate and cpc will not be considered in formula while calculating profit per conversion.

You can read more here:


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.