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.