Which two metrics are commonly used to gauge the effectiveness and profitability of paid search campaigns?

Which two metrics are commonly used to gauge the effectiveness and profitability of paid search campaigns?

• A. Impressions and clicks
• B. Cost per click and click-through rate
• C. Cost per lead and conversion rate
• D. Revenue and profit margin

Answer: (C)

The essential idea is to connect what you spend with what you get in tangible results. Cost per lead shows how much on average you’re paying to generate each lead, giving a clear view of cost efficiency. Conversion rate tells you what portion of your clicks actually become leads (or customers), revealing how effectively your ads and landing pages convert interest into action. Together, they let you assess profitability: you can judge whether the spend per lead is sustainable given the value of a lead, and you can see where to optimize to boost conversions. The other metrics don’t tie spend to concrete outcomes as directly: impressions and clicks measure exposure, not profitability; CPC and CTR focus on traffic cost and engagement without linking to conversions; and revenue and profit margin reflect results after the fact without showing how efficiently the campaign turns spend into leads.

The essential idea is to connect what you spend with what you get in tangible results. Cost per lead shows how much on average you’re paying to generate each lead, giving a clear view of cost efficiency. Conversion rate tells you what portion of your clicks actually become leads (or customers), revealing how effectively your ads and landing pages convert interest into action. Together, they let you assess profitability: you can judge whether the spend per lead is sustainable given the value of a lead, and you can see where to optimize to boost conversions. The other metrics don’t tie spend to concrete outcomes as directly: impressions and clicks measure exposure, not profitability; CPC and CTR focus on traffic cost and engagement without linking to conversions; and revenue and profit margin reflect results after the fact without showing how efficiently the campaign turns spend into leads.