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NEW QUESTION: 1

A. Option B
B. Option A
C. Option C
D. Option D
Answer: C

NEW QUESTION: 2
You have just gotten the results from a conversion campaign you ran for a membership site for 2 weeks:
There were 9 new customers acquired through the campaign.
Customers usually pay 6 months on average.
The monthly membership fee is $15.
The total amount you spent on the campaign was $400.
What is the ROAS for this campaign?
Choose only ONE best answer.
A. $410
B. $265
C. $102.50
D. -$265
Answer: A
Explanation:
Explanation
Return on Ad Spend (ROAS) measures gross revenue generated directly for every dollar spent on the advertising campaign:
ROAS = Revenue From Ad Campaign / Cost Of The Ad Campaign
A more accurate way to calculate ROAS when you have recurring revenue is with the following formula:
ROAS = (# of new customers acquired from Campaign x LTV of a New Customer) - Cost of Ad Campaign In this case, you would need the following info:
# of new customer => 9
LTV of new customers => 6 * $15 = $90
Cost of Ad Campaign => $400
ROAS = 9 * $90 - $400 = $410

NEW QUESTION: 3
Which option is the best description for NPV?
A. NPV is factored into the ROI calculation.
B. The opportunity to reduce NPV is a measureable business outcome and benefit to the customer business.
C. The adoption of licensed third-party solutions and services may result in a lower NPV.
D. The NPV takes into consideration the direct and indirect costs of maintaining technology solutions and services.
E. The NPV of technology solutions and services indicates the monetary value that those solutions bring to the business.
Answer: E