- (Avg CPC) * (Conversion Rate)
- (Avg Profit per Order) * (Conversion Rate)
- (Avg Revenue per Order) * (Profit Margin)
- (Total Profit) / (Total Revenue)
Correct Answer:
- (Avg Revenue per Order) * (Profit Margin)
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?
Correct Answer:
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