Based on the data below, which is the most effective advertising campaign? (Type 1)

Based on the data below which is the most effective advertising campaign

(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

Explanation

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.

Conclusion

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.

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