PRACTICE QUIZ: ROAS & ROI

1. DCB Cleaning ran an $800 campaign for businesses with new locations, offering one month of cleaning services for $300. They had 10 new clients sign up.

What was the ROAS of the campaign?

2. DCB Cleaning ran another campaign targeting big businesses looking to switch their cleaning services, offering a six month commitment for $1000. The campaign ran for three months, at $200 per month, and gained 6 new clients.

What was the ROAS?

3. DCB Cleaning ran a campaign to get people to download their app, knowing that for every five downloads, they generate $200 in revenue. The campaign cost $1000 and they received 75 downloads.

What was the ROAS?

4. Inu + Neko is launching a new product line on their website: bandanas for dogs. Each one costs $10, and in the month of their $800 campaign they sold out all 200 bandanas.

What was the ROAS?

5. Each bandana cost Inu + Neko $2 each to make. Remember that they sold 200 bandanas at $10 a piece and spent $800 on an ad campaign.

What was their ROI on the campaign?

(Round your answer to the nearest hundredth)

6. (Continued from Question 5) Having spent $800 on their ad campaign, Inu + Neko sold out of their initial stock of 200 bandanas. They also collected 500 preorders. What is their ROAS now?

Note: You do not need to take the cost of materials into account for the ROAS calculation.

7. Inu + Neko ran another campaign driving traffic to their website, which cost them $1000 over the course of two months. They received 2,000 new website visits, each of whom averaged out to $5.50 a purchase.

What was the ROAS?

8. Calla & Ivy ran a lead generation campaign for a free bouquet, knowing that one out of every four people eventually spend $50. They received 200 sign-ups for a campaign that cost $200.

What was the ROAS?

9. It costs Calla & Ivy $10 in materials to make each free bouquet. Keep in mind that they spent $200 on their marketing campaign and 50 of their 200 sign-ups each resulted in a $50 purchase.  Only those who signed up and made a purchase received a free bouquet.  

What is their ROI?

10. Calla & Ivy ran a campaign to boost app downloads, knowing that one out of every six people eventually purchase a subscription for $100. They spent $800 on the campaign and received 48 downloads.

What was the ROAS?

11. What things should you align to make your campaign successful?

12. Why is data important?

13. What are some places where you can find data to help you in your evaluations?

14. What’s the most important thing you need to do before analyzing your data?

15. How do you calculate ROAS?

16. Calla & Ivy spent $500 on advertising for a new subscription. It generated 100 leads, and 50 went on to purchase a yearly subscription at $50 a piece. What would the ROAS be on that campaign?

17. What is the difference between ROAS and ROI?

18. What is the Cost Per Result?

19. What are some things you need to take into account when you measure Cost Per Result?

20. Which demographic would you keep running ads to, and which would you pause? (Consider this one campaign.)

Demographic 1: Cost Per Result = $50

Demographic 2: Cost Per Result = $5

21. What is customer lifetime value or LTV?

22. What will have the biggest impact on increasing LTV?

23. How did Imra calculate the ROAS of the Spring subscription package?

24. How did Imra calculate the ROI of the Spring subscription package?

25. Why is there a difference in the ROAS and the ROI?

PRACTICE QUIZ: COST PER RESULT

1. Inu + Neko has recently run a number of campaigns, and is calculating the Cost Per Result of each. First, they start with a reach campaign, which generated 1,000 impressions for a $200 campaign. What was the Cost Per Result?

2. They ran another reach campaign spending the same amount ($200) and changed some of their settings. This time, they generated ten times more impressions than the last campaign, which generated 1,000 impressions. What was the Cost Per Result?

3. Their next campaign was a lead generation campaign. They know that every five leads converts into a $20 sale. The campaign cost $800, and they generated 1,000 leads. What was the Cost Per Result?

4. They ran another lead generation campaign, which cost them $200 per month for four months. Over that four months they brought in 2,000 leads, double the amount of leads as before. What was the Cost Per Result?

5. Next, they ran a campaign to increase views on their grooming videos. They allocated a $10 daily budget for the month of September, which has 30 days. They received 75 plays by the end. What was the Cost Per Result?

6. Not liking the Cost Per Result of the previous campaign, Inu + Neko ran another campaign and adjusted their settings in Ads Manager. They spent the same amount, $300, and received 300 views, which is four times the previous amount. What was the Cost Per Result?

7. Inu + Neko is trying to drive more traffic to the new products on their site, and set up a conversion campaign, allotting $500 a month for six months. At the end of that time they made $20,000 in sales from 600 customers. What was the Cost Per Result?

8. Inu + Neko wants to test out Catalogue Sales to showcase more inventory from their online store. They set up a campaign that cost $1500 total and lasted three months, and got 200 conversions for a total of $6000 revenue.

What was the Cost Per Result?

9. Inu + Neko set up a traffic campaign to drive visitors to their website, paying $200 a month for five months. Over the course of that time, they gained 10,000 new visits, half from advertising and half from organic. What was the Cost Per Result?

10. After that campaign, they changed some of their settings, but set up the same five month campaign at the same price. After that time, they gained another 10,000 visitors, three-quarters of which came from organic traffic. What was the Cost Per Result?

PRACTICE QUIZ: LTV

1. Calla & Ivy want to figure out the lifetime value of their customers. They know that an average person spends $50 a month, and the average lifespan of a customer is 5 years. What is the LTV?

2. Calla & Ivy are now trying to figure out some of the components of lifetime value for a particular demographic that comes into the store to buy flowers. This demographic made 100 purchases and spent $12,000 in the last month. What is their Average Purchase Value?

3. Next, Calla & Ivy want to figure out the purchase frequency. There were 50 people in this demographic that made purchases last month. What is the Average Purchase Frequency Rate per month? You need to use the information in Question 2 to figure this one out.

4. What is the Average Customer Value per month for this particular demographic? You need to use the information in Questions 2 & 3 to figure this one out.

5. If the average lifespan of a customer is 5 years, what is the LTV per customer for this demographic? You need to use the answer from Question 4 to figure this one out.

6. Inu + Neko are now trying to calculate the LTV of their customers. Last month, they made $30,000 over 1500 purchases. What was their Average Purchase Value?

7. As for Inu + Neko’s purchase frequency, they were able to see that 1000 people bought something at the store. What is the Average Purchase Frequency Rate per month? You need to use the information in Question 6 to figure this out.

8. What is the Average Customer Value per month? You need to use the information from Questions 6 & 7 to figure this out.

9. If the average lifespan of a customer is 12 years (the lifetime of their pet), what is the LTV per customer? You need to use the answer from Question 8 to figure this out.

10. Remembering that there were 1500 purchases made and the APV was $20, what would Inu + Neko’s LTV be if only 500 people bought something at the store?

11. What are some factors that affect your Cost Per Result?

12. How did James determine the LTV of his small business customers?

13. How did James determine the LTV of his large corporate customers?

14. What did the different lifetime values show?

META SOCIAL MEDIA MARKETING COURSERA ANSWERS AND STUDY GUIDE

Weekly Breakdown | Meta Study Guides | Back to Top

QUIZ: EVALUATE YOUR MARKETING RESULTS AGAINST GOALS

1. A business wants to evaluate how much they’re spending on their customers, versus how much their customers go on to spend. If they want to see how much they spent on getting the customer to a first purchase, that measurement would be:

2. A business is setting up a campaign, and is thinking ahead to which metrics they would want to track. Which KPIs would you track for a consideration campaign?

3. A marketing manager is attempting to collect data on their campaign. Where could they find information about how their paid and organic content did?

4. A college charges $10,000 per semester for tuition. If that college has two semesters per year, what is the student’s lifetime value for a student getting a four-year degree?

5. A business recently ran an awareness campaign, where they spent $200 a month for three months. At the end of that time they gained 2000 impressions. What was their Cost Per Result?

6. A business wants to see how well its campaigns are going. They’ve had an ROAS of around 3 in the past, and want to get a bigger return than that. They spent $600 and sold $2,100 worth. How did they do?

7. A business recently ran a campaign where their ROI was 3. They ran a second campaign where their ROAS was 4. Did they do better on the second campaign?

8. A company recently sold $10,000 worth of products, yet only spent $2000 on their advertising. What was their ROI, if they sold 5000 units, which cost $.50 to make?

9. A marketing manager is attempting to collect data on their campaign. Where would they gather metrics from?

10. A business determined that they spent $50 to acquire a customer. What would be included in that amount?

11. A business wants to evaluate their campaign, and specifically wants to look at how much net profit after investments they made versus how much they spent on advertising. This measurement would be:

12. A business gained 50 new customers in April, 100 new customers in May, and 150 new customers in June. During that time, they were running a campaign with a budget of $3000. What was their Customer Acquisition cost?

13. A marketing manager is attempting to collect data on their campaign. Where could they find information on website traffic?

14. A business recently ran a consideration campaign, where they spent $1000 total for two months. At the end of that time they had 10,000 new visitors to their website. What was their Cost Per Result?

15. A business wants to evaluate their campaign, and specifically wants to look at how much they spent for a customer to take an action. This measurement would be:

16. A company recently increased the price of one of their products. The product costs $1 to make, and previously they charged $5, but just increased the price to $7. If they spend the same amount on advertising ($1000), and sell the same amount of products (500) during a specific time period, how does their ROI change?

17. A local car dealership’s average customer comes in once every 10 years, and spends $30,000 on each purchase. An average customer in that particular town will spend 40 years frequenting that dealer. What is their lifetime value?

18. A business had an ROAS of 5 for their last campaign, and they’re pretty happy about it. They changed a few settings, though, based on their data, and for this campaign, on which they spent $2000, they generated $14,000 worth of revenue. How did they do?

19.  A business set up an awareness campaign, a consideration campaign, and a conversion campaign to get new customers to their first purchase. If they spent $10,000 total and got 500 new customers, what was their Customer Acquisition Cost?

20. A company sells products that cost them $5 each to produce. They recently spent $2500 on advertising, and sold 300 of them at a $20 price point. What was their ROI?

21. A coffee shop’s average customer comes in twice a week, and spends $5 on each purchase. An average customer will spend five years frequenting that coffee shop. What is their lifetime value?

22. A business is trying to get a better return on their ad spend — they’ve been hovering around 1.5 — and they’re hoping this last campaign helped. It ran at $400 ad spend a month for three months, and they generated $1500 in revenue. How did they do?

23. A business wants to evaluate how much they’re spending on their customers, versus how much their customers go on to spend. If they want to see how much they spent for a customer to take action on a campaign, that measurement would be:

24. A business wants to evaluate how much they’re spending on their customers, versus how much their customers go on to spend. If they want to see how much a customer will spend during the time they’re a customer, that measurement would be:

25. A business wants to evaluate their campaign, and specifically wants to look at how much revenue they made versus how much they spent on advertising. This measurement would be: