Right approach to CPA targets and budget, suited to maximize profit

    You’re an independent consultant selling an ebook you wrote about Search Engine Marketing for $50. You have campaigns across multiple online advertising platforms: search networks, display networks, & other advertising networks. Which approach to CPA targets and budget is best suited to maximize your total profit?

    • Predetermined budget, to be divided equally across all platforms. Minimize CPA on all platforms. Unlimited budget on all platforms where ROI is positive.
    • Find a different CPA for each platform which maximizes profit based on costs, sales volume, & contribution to overall marketing campaign.
    • Predetermined budget to be divided across all platforms. Allocate the most budget to the platforms with the lowest CPA.
    • Unlimited budget on all platforms where ROI is positive. Use a single CPA target for all channels which matches the channel with the lowest CPA.

    The Correct answer is:

    • Predetermined budget, to be divided equally across all platforms. Minimize CPA on all platforms. Unlimited budget on all platforms where ROI is positive.
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