Section 1: Introduction to Google Ads

Question 1

{NEEDS EDITING) To calculate your Break-Even CPC, divide your ________ by your desired ROAS.

Answer 1

revenue per click

Formula: Break-EvenCPA= AverageProfitPerConversion ×
SalesTeamConversionRate

ie.
If profit per conversion is $7,500 and the sales team closes 5%, the Break-Even CPA is $375.

Question 2

Revenue per click (RPC) is calculated as total ________ divided by total clicks.

Answer 2

conversion value

Formula:
RPC = TotalConversionValue / TotalClicks
​
ie.
If $12,000 in revenue is generated from 765 clicks, RPC = $15.69.

Question 3

{Needs Editing} Break-even CPA for forms is determined by multiplying your ________ per conversion by your sales team’s conversion rate.

Answer 3

average profit

Formula:
Break-EvenCPC= DesiredROAS/
RevenuePerClick
​
ie. With RPC = $15.69 and ROAS = 350%, the Break-Even CPC is $4.48.

Question 4

Your true cost per conversion accounts for both cost per conversion in AdWords and your ________ conversion rate.

Answer 4

sales team

Formula: TrueCostPerConversion= SalesTeamConversionRate/CostPerConversion

ie.
If cost per conversion is $98 and the sales team converts 10% of leads, the True Cost Per Conversion is $980.

Question 5

Lifetime Value (LTV) is the total revenue a customer generates over the ________ of their relationship with your business.

Answer 5

lifetime

Question 6

Using the AdWords Formula Calculator allows advertisers to present ________ numbers to clients or stakeholders.

Answer 6

real

Question 7

When using CPM (cost per thousand impressions) and click-through rate (CTR), CPC can be calculated as CPM (cost per mile) divided by ________.

Answer 7

CTR

Formula:
CPC= CTR/PM
​
ie. If CPM = $10 and CTR = 5%, CPC = $20.

Question 7

The formula calculator enables practitioners to assess advertising from a ________ perspective rather than aesthetics.

Answer 7

profitability

Question 8

The free AdWords Formula Calculator helps answer questions like “What’s the most I can pay for a ________?

Answer 8

form submission

Question 8

Not every form submission turns into a ________, so you must calculate profitability carefully.

Answer 8

sale

Question 9

What is CPM?

Answer 9

Cost per mile - the amount an advertiser pays a website per one thousand visitors who see its advertisements.

ie. the average CPM rate for a music video online has increased tenfold