PPC PPC Analytics and Reporting 1 — Questions and Answers
Question 1: What is the formula for calculating Return on Ad Spend (ROAS)?
- (Revenue - Ad Spend) / Ad Spend × 100
- Revenue / Ad Spend (Correct answer)
- Ad Spend / Revenue × 100
- Conversions / Clicks × Revenue
Correct answer: Revenue / Ad Spend
ROAS is calculated by dividing total revenue generated from ads by the total amount spent on ads, expressed as a ratio or multiplied by 100 for a percentage.
Question 2: What does Cost Per Acquisition (CPA) measure in PPC reporting?
- The cost to acquire one keyword ranking
- The average cost to acquire one conversion or customer action (Correct answer)
- The total ad spend divided by total impressions
- The revenue generated per ad click
Correct answer: The average cost to acquire one conversion or customer action
CPA is calculated by dividing total ad spend by the number of conversions, representing the average dollar cost to complete one desired action.
Question 3: What is 'view-through conversion' in Google Ads?
- A conversion that occurs after a user views a video ad to completion
- A conversion that happens after a user sees but does not click a display ad and later converts on the site (Correct answer)
- A conversion tracked by watching a thank-you page video
- A conversion registered when a user views an ad more than three times
Correct answer: A conversion that happens after a user sees but does not click a display ad and later converts on the site
View-through conversions record when a user is shown a display ad impression but does not click it, yet later visits the website and completes a conversion within a defined window.
Question 4: What is the significance of 'bounce rate' as a PPC landing page metric?
- It measures how many ads were rejected by Google's editorial policy
- It shows the percentage of visitors who leave the landing page without taking any action (Correct answer)
- It tracks how often users click the back button before the ad loads
- It counts how many clicks were marked as invalid by Google
Correct answer: It shows the percentage of visitors who leave the landing page without taking any action
Bounce rate measures the percentage of landing page sessions where users left without interacting further, which can indicate ad-to-page relevance issues or UX problems.
Question 5: Which metric best measures the profitability of a PPC keyword at the campaign level?
- Click-through rate (CTR)
- Conversion value / cost (ROAS) (Correct answer)
- Average CPC
- Quality Score
Correct answer: Conversion value / cost (ROAS)
Conversion value divided by cost (ROAS) is the most direct indicator of whether a keyword is generating profitable revenue relative to what is spent to trigger it.
Question 6: What is 'click fraud' in PPC advertising?
- Bidding on competitor brand keywords
- Fraudulent or invalid clicks on PPC ads intended to exhaust an advertiser's budget without genuine interest (Correct answer)
- Using automated rules to click competitors' ads in analysis
- Clicking your own ads to test the user experience
Correct answer: Fraudulent or invalid clicks on PPC ads intended to exhaust an advertiser's budget without genuine interest
Click fraud involves fake or malicious clicks on PPC ads — often by competitors or bots — designed to deplete an advertiser's budget without producing any real business value.
PPC PPC Analytics and Reporting 1
What is the formula for calculating Return on Ad Spend (ROAS)?