# Course 5 – Measure and Optimize Social Media Marketing Campaigns

## CONTENT

This week you’ll learn all about how to align metrics with your marketing goals and data analysis techniques. You’ll gain an understanding of common terms, such as return on investment and lifetime value, and learn how to calculate them.

## Learning Objectives

• Align metrics with common marketing goals
• Understand data and reports for marketing measurement
• Define common terms: ROAS, ROI, Cost per Result, LTV
• Calculate common marketing metrics

## PRACTICE QUIZ: ROAS & ROI

### What was the ROAS of the campaign?

• 0.375
• 3.75 (CORRECT)
• 26.67

Correct! You’d take \$300 and multiply it by 10 to get the revenue, and divide by \$800 ad spend.

### What was the ROAS?

• 5
• 10 (CORRECT)
• 30
• 1.67

Correct! You’d take \$1000 and multiply it by 6 to get the revenue, and divide by \$600 (\$200 x 3) ad spend.

### What was the ROAS?

• 1
• 15
• 3 (CORRECT)

Correct! You’d take \$200 and multiply it by 15 (75/5) to get the revenue, and divide by \$1000 ad spend.

### What was the ROAS?

• 0.25
• 25
• 2.5 (CORRECT)

Correct! You’d take 200 and multiply it by \$10 to get the revenue, and divide by \$800 ad spend.

### What was their ROI on the campaign?

• 2
• 0.67 (CORRECT)
• 1.57

Correct! You’d take \$2000 revenue and subtract the \$1200 investments (\$400 materials + \$800 ad spend), and then divide by the \$1200 investments.

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

• 6.25
• 8.75 (CORRECT)
• 0.875

Correct! You’d take 700 total orders and multiply it by \$10 to get the revenue, and divide by \$800 ad spend.

### What was the ROAS?

• 2
• 2.75
• 11 (CORRECT)

Correct! You’d take 2000 and multiply it by \$5.50 to get the revenue, and divide by \$1000 ad spend.

### What was the ROAS?

• 1
• 50
• 12.5 (CORRECT)

Correct! You’d take 50 (200/4 – this is one out of every four people) and multiply it by \$50 to get the revenue, and divide by \$200 ad spend.

### What is their ROI?

• 12.45
• 4.75
• 40
• 2.57 (CORRECT)

Correct! You’d take \$2500 revenue (\$50 x 50 customers) and subtract the \$700 investments (\$500 material + \$200 ad spend), and then divide by the investments.

### What was the ROAS?

• 1 (CORRECT)
• 6
• 2.88
• 0.75

Correct! You’d take 8 (48/6 – this one out of six people) and multiply it by \$100 to get the revenue, and divide by \$800 ad spend.

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

• SMART goals and Ads Manager Objectives
• SMART goals, KPIs, and Ads Manager Objectives (CORRECT)
• SMART goals, KPIs, Ads Manager Objectives, and focus groups
• SMART goals, KPIs, and brand voice

### 12. Why is data important?

• Helps you better know who your customer is
• Allows you to make informed decisions on market strategy
• All of the above (CORRECT)

Correct! There are many reasons why data is important to know.

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

• Social media site analytics dashboards
• Website dashboards and Google Analytics
• All of the above (CORRECT)

Correct! These are some of places where you can find data to help you in your marketing efforts.

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

• Solidify your goals so you know what to look for. (CORRECT)
• Run at least five campaigns.
• Hire an analyst.

Correct! Having goals in place gives you something to measure.

### 15. How do you calculate ROAS?

Correct! This is how you would calculate ROAS.

• 2
• 1
• 10
• 5 (CORRECT)

### 17. What is the difference between ROAS and ROI?

• They’re the same measurement
• ROAS looks at spending on ad campaigns; ROI looks at the bigger picture spending (CORRECT)
• ROAS looks at specific ad campaigns; ROI looks at conversions
• ROAS looks at conversions; ROI looks at specific campaigns

### 18. What is the Cost Per Result?

• It’s the amount at which you set your campaign bid
• It’s the same as Return on Investment
• It’s the same thing as Return on Ad Spend
• It measures how much it costs for a customer to take a desired action (CORRECT)

Correct! How much do you spend per customer action, like a link click, app install, or conversion.

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

• Goals of the campaign
• Cost Per Result compared to future sales
• Campaign budget
• All of the above (CORRECT)

Correct! You should look at multiple factors when evaluating the success of your campaign.

### Demographic 2: Cost Per Result = \$5

• Keep running ads to #1; pause #2
• Keep running ads to both, as Cost Per Result doesn’t tell much
• Keep running ads to #2; pause #1 (CORRECT)
• Pause ads to both, as Cost Per Result doesn’t tell much

Correct! Demographic 2 is gaining more returns, making it more cost-effectively in comparison to Demographic 1.

### 21. What is customer lifetime value or LTV?

• A measurement of the profit you’ll receive from a customer over their relationship with you
• A way to place value on your loyal customers
• A way to measure your customer retention efforts
• All of the above (CORRECT)

Correct! LTV does all of the above while giving you a glimpse at customer loyalty.

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

• Better top-of-funnel marketing
• More frequent social media posts
• Creating more product segments
• Better customer service (CORRECT)

Correct! Retaining customers for the long term is going to be most affected by customer service.

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

• Revenue divided by the ad spend (CORRECT)
• Revenue minus investments, divided by the ad spend
• Ad spend divided by the revenue
• Monthly earnings divided by ad spend

Correct! This is the formula for ROAS.

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

• Investments divided by ad spend.
• Revenue divided by ad spend.
• Revenue divided by ad spend minute investments.
• Revenue minus investments, divided by the investments. (CORRECT)

Correct! This is the formula for ROI.

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

• ROAS and ROI both measure the same things
• ROAS looks at revenue compared to ad spend, whereas ROI factors in investments (CORRECT)
• ROI looks at revenue compared to investments, whereas ROAS factors in investments
• ROAS tells you what you made, whereas ROI doesn’t

Correct! ROAS looks at just what was made from a campaign, instead of including investments, COGS, overhead, etc.

## 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?

• \$2.00
• \$0.20 (CORRECT)
• \$0.02

Correct! \$200 divided by 1,000 impressions is 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?

• \$0.02 (CORRECT)
• \$0.20
• \$200

Correct! \$200 divided by 10,000 impressions is 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?

• \$4.00
• \$0.80 (CORRECT)
• \$0.25

Correct! \$800 divided by 1,000 leads is 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?

• \$0.10
• \$0.025
• \$0.40 (CORRECT)

Correct! \$800 divided by 2,000 leads is 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?

• \$0.13
• \$4.00 (CORRECT)
• \$0.40

Correct! \$300 divided by 75 views is 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?

• \$2.00
• \$0.25
• \$1.00 (CORRECT)

Correct! \$300 divided by 300 views is 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?

• \$0.15
• \$5.00 (CORRECT)
• \$2.00

Correct! \$3,000 divided by 600 conversions is the Cost Per Result.

### What was the Cost Per Result?

• \$0.75
• \$7.50 (CORRECT)
• \$0.25

Correct! \$1500 divided by 200 conversions is 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?

• \$0.20 (CORRECT)
• \$0.02
• \$0.10

Correct! \$1000 divided by 5,000 link clicks is 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?

• \$0.40 (CORRECT)
• \$0.13
• \$0.05

Correct! \$1000 divided by 2,500 link clicks is 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?

• \$250
• \$3000 (CORRECT)
• \$600

Correct! Multiply \$50 times 12 months times 5 years.

### 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?

• \$12,000
• \$1200
• \$120 (CORRECT)

Correct! Divide \$12,000 by the 100 purchases.

### 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.

• 2 (CORRECT)
• .5
• 240

Correct! Divide the 100 purchases by the 50 people.

### 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.

• \$60
• \$240 (CORRECT)
• \$120

Correct! Multiply the Average Purchase Frequency Rate of 2 by the Average Purchase Value of \$120.

### 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.

• \$5,000
• \$14,400 (CORRECT)
• \$1,200

Correct! Multiply the Average Customer Value of \$240 by 12 months, then by 5 years to get the Lifetime Value.

### 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?

• Cannot determine with the information given
• \$20 (CORRECT)
• \$2,000

Correct! Divide \$30,000 by the 1500 purchases.

### 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.

• 1.5 (CORRECT)
• 30
• 15

Correct! Divide the 1500 purchases by 1000 people.

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

• \$15
• \$1.5
• \$30 (CORRECT)

Correct! Multiply the Average Purchase Frequency Rate of 1.5 by the Average Purchase Value of \$20.

### 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.

• \$360
• Cannot be determined with the information given
• \$4320 (CORRECT)

Correct! Multiply the Average Customer Value of \$30 by 12 months, then by 12 years.

### 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?

• \$8640 (CORRECT)
• \$12,960
• \$7000

Correct! Multiply the new Average Customer Value of \$60 (1500 purchases divided by 500, times the APV of \$20) by 12 months, then by 12 years.

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

• Audience
• Schedule
• All of the above (CORRECT)

Correct! All of these factors can affect the Cost Per Result on a campaign.

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

• Avg. purchase value (\$2000/yr) x avg. purchase frequency (1 year) = \$2000 avg. customer value X avg. customer lifespan (10 years) = \$20,000 (CORRECT)
• Avg. purchase value (\$6000/yr) X avg. purchase frequency (1 year) = \$6000 avg. customer value X avg. customer lifespan (5 years) = \$30,000
• Avg. purchase value (\$4000/yr) x avg. purchase frequency (1 year) = \$4000 avg. customer value X avg. customer lifespan (7 years) = \$28,000
• Avg. purchase value (\$2000/yr) X avg. purchase frequency (2x/year) = \$4000 avg. customer value X avg. customer lifespan (10 years) = \$40,000

Correct! This is the formula for LTV for small businesses.

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

• Avg. purchase value (\$6000/yr) X avg. purchase frequency (1 year) = \$6000 avg. customer value X avg. customer lifespan (5 years) = \$30,000 (CORRECT)
• Avg. purchase value (\$1000/yr) X avg. purchase frequency (2x/year) = \$2000 avg. customer value X avg. customer lifespan (50 years) = \$10,000
• Avg. purchase value (\$4000/yr) x avg. purchase frequency (1 year) = \$4000 avg. customer value X avg. customer lifespan (7 years) = \$28,000
• Avg. purchase value (\$2000/yr) x avg. purchase frequency (1 year) = \$2000 avg. customer value X avg. customer lifespan (10 years) = \$20,000

Correct! This is the formula for LTV for large businesses.

### 14. What did the different lifetime values show?

• Which segment had a higher budget for the Snackwall
• Which segments like the Snackwall more
• Which segment had more people
• Which segments to target for higher profit (CORRECT)

Correct! This is one of the conclusions James made from the data.

## META SOCIAL MEDIA MARKETING COURSERA ANSWERS AND STUDY GUIDE

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## 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:

• CPR
• CAC (CORRECT)
• ROI
• LTV

Correct! It would be Customer Acquisition Cost.

### 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?

• None of the above.
• Purchases, store visits, or lead generation
• Reach, impression, or brand awareness
• Likes, traffic, or engagement (CORRECT)

Correct! You would track these 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?

• A third party site like Hootsuite
• All of the above (CORRECT)

Correct! All of these sources can give data on paid and organic content.

### 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?

• \$80,000 (CORRECT)
• \$100,000
• \$40,000
• \$60,000

Correct! That’s the Lifetime Value of an average student.

### 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?

• \$0.20
• \$0.40
• \$0.10
• \$0.30 (CORRECT)

Correct! That’s the Cost Per Result of their campaign.

### 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?

• Better — their ROAS went up by 1
• Better — their ROAS went up by .5 (CORRECT)
• They stayed the same
• Worse — their ROAS went down by .5

Correct! Their ROAS for this campaign was 3.5.

### 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?

• They did worse on the second campaign
• We can’t tell, since ROI and ROAS are different measurements (CORRECT)
• The campaigns came out equally
• They did 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?

• 5
• 1.22 (CORRECT)
• 3.75
• 4

Correct! It would be their revenue minus investments divided by investments.

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

• Individual platform dashboards
• All of the above (CORRECT)

Correct! All of these sources can give data on how the campaign went.

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

• Money spent on awareness campaigns
• Money spent on consideration campaigns
• Money spent on conversion campaigns
• All of the above (CORRECT)

Correct! You include money spent on all of the above since they all might have helped acquire the customer.

### 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:

• LTV
• ROAS
• ROI (CORRECT)
• CPR

Correct! It would be Return on Investment.

### 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?

• \$10 per customer (CORRECT)
• \$20 per customer
• \$5 per customer
• \$25 per customer

Correct! Their CAC was \$10.

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

• Web host analytics dashboard
• All of the above (CORRECT)

Correct! All of these sources can give analytics on web 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?

• \$0.20
• \$0.40
• \$0.10 (CORRECT)
• \$0.30

Correct! That’s the Cost Per Result of their campaign.

### 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:

• LTV
• ROAS
• ROI
• CPR (CORRECT)

Correct! It would be Cost per Result.

### 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?

• ROI stays the same
• ROI goes from 3.2 to 2.3
• ROI goes from 0.67 to 1.33 (CORRECT)
• ROI goes from 2.5 to 3.5

Correct! This would be the change in ROI.

### 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?

• \$120,000 (CORRECT)
• \$100,000
• \$90,000
• \$60,000

Correct! That’s the Lifetime Value of an average customer.

### 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?

• Better — their ROAS went up by 3
• Worse — their ROAS went down by 1
• Worse — their ROAS went down by 2
• Better — their ROAS went up by 2 (CORRECT)

Correct! Their ROAS for this campaign was 7.

### 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?

• \$100 per customer
• \$50 per customer
• \$20 per customer (CORRECT)
• \$5 per customer

Correct! Their CAC was \$20.

### 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?

• 1.8
• 0.5 (CORRECT)
• 2.4
• 2

Correct! It would be their revenue minus investments divided by investments.

### 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?

• \$5,200
• \$2,600 (CORRECT)
• \$1,300
• \$3,000

Correct! That’s the Lifetime Value of an average customer.

### 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?

• Worse — their ROAS went down by .5
• Better — their ROAS went up by .1
• Better — their ROAS went up by .5
• Worse — their ROAS went down by .25 (CORRECT)

Correct! Their ROAS for this campaign was 1.25.

### 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:

• ROAS
• CPR (CORRECT)
• ROI
• LTV

Correct! It would be Cost Per Result.

### 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:

• CAC
• LTV (CORRECT)
• CPR
• ROI

Correct! It would be Lifetime Value.

### 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:

• LTV
• ROAS (CORRECT)
• ROI
• CPR

Correct! It would be Return on Ad Spend.

Correct: Correct! Feed is an option for ad placement on Instagram.

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