You are CEO of a small e-commerce shop and your team is debating AdWords performance metrics to maximize profit. Budget is unlimited as long as ROI is positive. Whose recommendations most effectively position you for maximum profit?

1. Lou: “We get a CPA of $15 on our e-mail campaign. Let’s meet or beat that benchmark across all marketing platforms.”
2. Joe: “An MBA class once suggested ad-spend should always be 9% of revenue. Let’s use that as our target ROI.”
3. Jane: “A $15 CPA is okay, but if we could get it down to $10 that would give us more profit-per-customer.”
4. Pete: “Let’s start by verifying our campaign is profitable, then test different CPA targets to find which maximizes total profit.”

Correct Answer:

• Pete: “Let’s start by verifying our campaign is profitable, then test different CPA targets to find which maximizes total profit.”