(A) Campaign 1 because it drove more leads
(B) Campaign 1 because it has a lower lifetime value
(C) Campaign 2 because it has a greater return
(D) Campaign 2 because it has a higher CPA
The total return for a campaign can be calculated as
( Number of leads * Lifetime Value ) – Total Campaign Spend
Return for Campaign 1 = ( 1000 * $50 ) – $25,000 = ($50,000 – $25,000) = $25,000
Return for Campaign 2 = ( 500 * $200 ) – $25,000 = ($100,000 – $25,000) = $75,000
Since the return for Campaign 2 is greater than Campaign 1, the most effective advertising campaign is Campaign 2.
This question is a part of the HubSpot Digital Advertising Certification Exam. You can find answers to all the questions asked in this exam on our HubSpot Digital Advertising Certification Exam Answers page.