You Manage the Campaigns for A Baby Stroller Manufacturer that Sells Its Products Online and Through Large Retailers. to Calculate the Total Profits from These Campaigns, You Should:

You manage the campaigns for a baby stroller manufacturer that sells its products online and through large retailers. To calculate the total profits from these campaigns, you should:

  • estimate revenue based on in-store sales, factor out gross margins, and subtract Google Ads costs
  • estimate revenue based on the value of a click, factor out gross margins, and subtract Google Ads costs
  • estimate revenue based on the value of a Google Ads customer, factor out gross margins, and subtract Google Ads costs.
  • estimate revenue based on online sales, factor out gross margins and subtract Google Ads costs

Right Answer:

  • estimate revenue based on the value of a Google Ads customer, factor out gross margins, and subtract Google Ads costs

Explanation:

https://support.google.com/partners/answer/2796446?hl=en

Estimating conversion value is done in order to finalize the amount that one advertiser wishes to get at the end of the campaign or while making profits. Conversion value is the amount of profit or gains that you expect at the end of one conversion.

It is reasonable to estimate the conversion value beforehand. This has to be done in order to see what the situation of the market goes by. There are quite a few factors which determine the Conversion Value.

Hence, you can never really stay stagnant with your approach as far as your ads in your Ad Campaign are concerned. You need to constantly revise yourself in order to get hold of the best, relevant content for the viewer. If not, you will have your visibility decrease with respect to time.

Thus, conversion value is something you need to take care of. Use of a Conversion Optimizer would help immensely, however, it will limit the traffic since it will make sure only the positive audience is the one getting it. It will reduce the audience depending on the response or conversion your Ads get accordingly.

The most basic things to be taken into consideration for estimating conversion value are as follows:

  • Repeat Business or Remarketing
  • Word of Mouth
  • Lifetime Customer Value etc.

If you have any questions regarding the question You manage the campaigns for a baby stroller manufacturer…, do drop in a comment below.

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