Based on the data below, which is the most effective advertising campaign? (Type 2)

Based on the data below which is the most effective advertising campaign 2

(A) Campaign 1 because it has a greater return

(B) Campaign 1 because it drove more leads

(C) Campaign 2 because it has a greater return

(D) Campaign 2 because it drove more leads

Explanation

The total return for a campaign can be calculated as

( Number of leads * Lifetime Value ) – Total Campaign Spend

Return for Campaign 1 = ( 250 * $150 ) – $10,000 = ($37,500 – $10,000) = $27,500

Return for Campaign 2 = ( 400 * $50 ) – $10,000 = ($20,000 – $10,000) = $10,000

Since the return for Campaign 1 is greater than Campaign 2, the most effective advertising campaign is Campaign 1.

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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